Sep

Mortgage lender returns to holiday lets after ‘tsunami’ of landlord applications forced it to withdraw

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Another major mortgage lender has re-joined the holiday let market after it was swamped by demand earlier this summer.

Ipswich Building Society (IBS) says it received so many applications from landlords looking to capitalise on the staycation boom in July that it was forced it to withdraw products.

It’s now decided the time is right to introduce its holiday let range again, along with its standard residential and buy to let ranges, which includes residential deals at 85% LTV, as well as reinstating lending on properties worth more than £1m.

CEO Richard Norrington says: “We’ve been keeping a keen eye on the market and taken careful consideration over the appropriate time to re-enter.

Service standards

“It is important we introduce and maintain a suitable range of products which enable us to uphold our service standards.”

IBS holiday let mortgages are available at 80% LTV, with a minimum loan of £75,000, a maximum loan of £500,000, an application fee of £199 and a completion fee of £950.

Its two-year fixed rate at 3.25 % is fixed until 31stDecember 2022, while its two-year discount rate at SVR (currently 5.24%) minus 2.25%, gives a current pay rate of 2.99% for two years from date of completion.

The five-year fixed rate at 3.75% is fixed for five years from date of completion.

The number of holiday lets mortgage products continues to rise, according to Moneyfacts, which counted 74 in August from 14 providers – up from 60 products on offer in July.

Visit IBS.

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