Holiday Let mortgages

Bath Building Society is one of only a few lenders to offer holiday let mortgages for people who want to buy a property to rent as a holiday let. We will consider remortgaging an existing holiday let property for home improvements or purchase of another property. Personal use of the property is permitted for up to 60 days and we will allow the property to be let out as an Airbnb during periods when the property is unoccupied. Please note Limited Company Holiday Let mortgages are not currently available for Intermediaries.

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Variable rate Holiday Let mortgages

Our Standard Variable Rate (SVR) is currently 7.79%. There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Product name

Holiday Let variable for 2 years

Product code: HDD033

Initial rate

5.49%

Discount from SVR

2.30%

Overall cost for comparison

7.8% APRC

Max LTV %

75%

Product fee

£999

Loan:	Size: Minimum £50,000, Maximum £1,000,000 at 75%. Term: Minimum 5 years, Maximum 40 years. Repayment Type: Capital Repayment, Interest Only
Property:	Minimum value is £100,000. The property must be in England, Wales or Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay and be of standard construction. No properties on sites. Maximum 5 bedrooms.
All applicants:	Must be UK residents. Minimum age 21. No maximum age, subject to income in retirement.
Income:	Household income must be at least £30,000.
Rental:	The calculation is based on the actual or expected rental on an AST basis. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.
Underwriting:	We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. We will consider holiday lets throughout England and Wales subject to acceptance by the Society’s valuer.
Other information	You must be able to service your existing commitments from income without recourse to the rent from this property. If you have a Buy to Let or Holiday Let portfolio, you will need to demonstrate that this is self-funding.

Loan:

Size: Minimum £50,000, Maximum £1,000,000 at 75%.
Term: Minimum 5 years, Maximum 40 years.
Repayment Type: Capital Repayment, Interest Only

Property:

Minimum value is £100,000. The property must be in England, Wales or Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay and be of standard construction. No properties on sites. Maximum 5 bedrooms.

All applicants:

Must be UK residents. Minimum age 21. No maximum age, subject to income in retirement.

Income:

Household income must be at least £30,000.

Rental:

The calculation is based on the actual or expected rental on an AST basis. Rent must cover 125% of the ‘stressed mortgage payments’ for basic rate tax payers, or 145% for higher rate tax payers. The stressed mortgage payment is based on the product rate +2% or 5.5% whichever is higher.

Underwriting:

We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk. We will consider holiday lets throughout England and Wales subject to acceptance by the Society’s valuer.

Other information

You must be able to service your existing commitments from income without recourse to the rent from this property. If you have a Buy to Let or Holiday Let portfolio, you will need to demonstrate that this is self-funding.

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