Holiday let queries surge among brokers

September saw an increase in broker queries concerning holiday lets, according to PRIMIS Mortgage Network.

Interest rates on cash savings accounts have fallen to record lows during 2021, and with savers considering alternative ways to invest, the figures suggest a rise in those who have seen holiday lets as an enticing investment opportunity due to increased short-term rental demand.

The network’s product desk supported appointed representative (AR) advisers with a total 2,387 queries in September, a figure up from 1,903 in August.

Queries relating to buy-to-let products for first-time buyers and landlords with minimum income were also among the most common during September.

PRIMIS proposition director, Vikki Jefferies, said that the results reflect the market’s “ongoing recovery and buoyancy”.

“With the recent boom in the staycation market, it’s of no surprise to see increased queries on holiday lets as people see their investment potential, especially in the run up to the festive season,” she said.

“The low rates and updated criteria from many lenders in the buy-to-let market also explain the rise in queries on these products, especially those tailored towards complex first-time landlords. However, with a potential rate rise looming, it will be interesting to see how queries evolve over the coming weeks, especially as more borrowers might look to fix into lower rates for longer.”

PRIMIS’ product desk also continued to see increased queries on the mortgage options being made available to those with adverse credit. Lenders are now beginning to offer a wider range of mortgages to complex borrowers, which the network suggested could signal an increase in lender confidence.

Jefferies added: “It’s also especially promising to see high levels of queries on adverse credit and self-employed mortgages, suggesting that many borrowers who may have struggled during the pandemic are now able to access affordable products.

“However, with government schemes such as Help to Buy winding down, there are still some challenges to overcome within the market.”

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