Teachers society launches variable rate mortgage for holiday homes

UK: The Teachers Building Society has introduced a variable rate mortgage which will be targeted at properties in the vacation rental sector.

The two-year product, which is available for purchase and re-mortgage in England and Wales, will be on offer at up to 75 per cent loan-to-value.

The criteria for the mortgage will require a maximum loan size of £750,000 and a maximum term of up to 40 years.

For a re-mortgage rental assessment, the lender requires 100 per cent of evidenced rental receipts over a 12 month period used.

Business development manager at Teachers Building Society, Andy Yates, said the lender was one of several to offer specially-designed mortgages for properties to be listed as holiday homes available for short-term rental.

He said: “This new holiday let mortgage is just one addition to changes we have made over the last year or so. We have opened up our lending to applicants of any profession, updated our lending criteria to include new income types, such as the ability to use 100 per cent of NHS and police allowances and overtime, and added clarification as to when stipend income is accepted and new criteria for bank nurses and locums.”

The society was founded back in 1966 to help teachers get onto the property ladder, however in November 2017 the lender began offering mortgages to borrowers of all occupations.

Mark Stallard, mortgage adviser at House and Holiday Home Mortgages, recognised the benefits of seeing another lender come into the growing short-term rental space.

He said: “Teachers has a good reputation for helping borrowers in niche areas. There is an ever-growing demand for holiday let borrowing and having Teachers Building Society as a lender is an excellent addition to my panel of specialist lenders.”