Dudley expecting strong demand for holiday let property finance

Dudley Building Society has launched a mortgage aimed at owners of holiday let property looking for a flexible finance facility that allows no penalty early repayment after two years.

The product which is priced with a 1.65% discount (from the current BTL SVR of 5.49%) for the term of the mortgage, currently 3.84%, lets borrowers repay up to 20% of the advance in each of the first two years. Loans are available from £25000 to £1 million at 70% LTV for remortgage only. The product which carries no upper age limit will therefore appeal to a wider range of borrowers.

The pandemic and subsequent lockdown this year decimated foreign travel and led to an unprecedented rise in numbers of holidaymakers visiting popular destinations within the UK this year. Owners with property to let have therefore enjoyed a bumper year of bookings.

According to Dudley’s Commercial Director, Sam Ward, this is a good time to provide a flexible finance option to holiday let owners through their advisers.

She said, “This is another example where the Dudley has developed a product in a specialist niche to benefit the sector. We believe that the package we have put together provides owners with a particularly attractive alternative to the limited funding that was traditionally available to borrowers. Equally, there will be owners who have bought their property outright who might want to release equity from their investment property for other purposes. The high demand for good quality self-catering accommodation has never been higher and with record bookings expected for the foreseeable future, there has never been a better time to launch a holiday let package.”

Published: 02 October 2020