Cumberland Building Society are one of the few lenders truly in the holiday lending market and we have regular contact with them to see if they can provide mortgage lending solutions to our holiday let investors.
The reason is that they have made the UK holiday let/short term let market or “staycation” as its colloquially known, part of their core lending business. Furthermore, their underwriters have years of experience and have developed an understanding of the market for both simple and complex cases. Our role as a broker is twofold. Firstly, we have to understand and advise the client and secondly we have to know which lenders fit the requirement. It is especially helpful for us to be able to deal directly with an experienced underwriter who can understand the situation quickly and give fast responses and moreover with a lender who is positively looking for reasons to help our customers.
Cumberland Building Society has now reaffirmed its commitment to the Holiday Let market, through some improvements to its standard holiday let product range.
This week, it was announced in the press that the Society would both increase its loan size and add a fixed rate option to its range of holiday let mortgage products.
They will now lend up to £750,000 on standard product terms, up to 60% LTV. Special bespoke lending products are available for larger loans and for higher LTVs.
In the press release David Wallace, Business Lending Manager at Cumberland, said: “We have seen the rise in popularity of self-catering holidays in the UK over the past few years and the uncertainty surrounding Brexit may be a contributing factor in the growth of the staycation market.
“The introduction of the new 5 year fixed rate products and the revision of product terms allows us to continue to support holiday let property owners throughout mainland UK and demonstrates our continued and long term commitment to the holiday let mortgage market”.
We see this change in Cumberland’s lending criteria and product range as a massive boost for a sector that’s already thriving, further enhancing the UK as a holiday destination and an attractive sector in which to invest.