Scotland: The Scottish Building Society has launched its own mortgage product for borrowers looking to buy or re-mortgage a property that is operated as a holiday let.
The mortgage is available on a three-year discounted variable, with a current rate of 3.75 per cent, and it comes with a fee of £995.
The deal is available on properties across Scotland, with loans ranging between £50,000 and £350,000.
Up to 50 per cent of the rental income may be included in the affordability calculation if the property has a previous track record. The deal is available for up to 80 per cent on a capital repayment basis or for 75 per cent on interest-only.
Paul Alexander, head of business development and sales strategy at The Scottish Building Society, told Mortgage Solutions that there had been a “massive growth” in the number of properties being converted into short-term let holiday accommodation through rental platforms like Airbnb. This was particularly noticeable in popular tourist destinations in the country, such as the capital city of Edinburgh.
Alexander said: “Brokers have told us there is a demand for a product designed to meet the needs of this developing market.”
For more information, visit The Scottish Building Society’s website here.