YBS enters holiday let market with ‘tourist hotspot’ mortgage
It is the latest lender to take advantage of the growing ‘staycation’ market which is booming in the post-lockdown tourism economy.
YBS said holiday homes have been a significant and growing sector of the UK economy and according to Visit Britain, in 2019, British residents took more than 99 million overnight trips in England, spending £19.4 billion.
What’s more, since the recently-announced stamp duty holiday, queries from investors wanting to buy holiday lets have reported to have increased by 25% in some areas.
Although YBS is already in the limited company buy-to-let sector it hoped the launch of the new holiday product, which focuses on homes on the south coast, south west, Wales and the Lake District, would feed demand for this new niche area.
Allan Griffiths, YBS commercial mortgages regional director said: “We know the UK tourism industry has been badly affected by the coronavirus pandemic and subsequent lockdown, but as restrictions ease, staycations are soaring in popularity.
“We hope that the launch of our new targeted product for this sector specific need will help to support the tourist industry in these areas.
“Our flexible, personal service model allows us to tailor loans to suit the individual needs of our borrowers. My team and I are looking forward to supporting borrowers with specific plans to invest in properties specifically for holiday letting.”
The new product offers a five-year fixed rate at 3.85% for loans up to 75% loan-to-value (LTV) with a maximum loan amount of £1 million.