Scottish BS launches holiday let mortgage product

Scottish Building Society has launched a mortgage product designed to allow the purchase or remortgage of holiday lets marked through companies such as Airbnb.

The product is available on properties across Scotland, with loans starting from £50,000 up to £350,000. Up to 50 per cent of holiday let rental income may be included in the affordability calculation where there is historic data can be produced.

The building society will consider loans up to 80 per cent LTV on a capital repayment basis or up to 75 per cent interest-only. The product carries an arrangement fee of £995 and is available on a three-year discounted variable rate of 3.79 per cent.

Commenting, Scottish Building Society head of business development and sales strategy Paul Alexander said: “We have seen a massive growth in the number of properties now let as holiday accommodation through sites such as Airbnb, particularly in tourist hot spots like Edinburgh. Brokers have told us there is a demand for a product designed to meet the needs of this developing market.”

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