The specialist lender has also reduced rates on its 2-year fixed rate Holiday Let mortgage by 95 basis points

Hodge has reinstated it’s 5 year fixed rate products, added a new 2 year fixed rate product and reduced the rate on its current 2 year fixed rate product by 95 basis points. 

Rates have also been reduced across the Holiday Let retention range by up to 83 basis points.  

Alongside this, the specialist lender has also made criteria changes. 

As of November 28th, holiday let lending will be restricted to non-portfolio landlords, meaning that Hodge will only accept holiday let mortgage applications from property .investors who have three or less mortgaged properties excluding their primary residence 

 

In light of recent tax changes in the Spring Budget, stress rates on these products are also changing: 

  • Stress rates for the 5-year holiday let products will increase to a maximum of pay rate +2% or 5.5% 
  • Stress rates for pound for pound remortgages will increase to the maximum of pay rate +2% or 5.5% 
  • There is no change to the 2-year stress rate 
  • The Interest Coverage Ratio (ICR) will be reduced across the board from 145% to 140% 

Therefore, as of Thursday, 28th November, the following products will be available at the following rates:  

Product  Max LTV  Product Fee  Current Rate  New rate  Difference 
HBTL Mortgage 2 year fixed  75%  £1,995  New  5.75%    
HBTL Mortgage 2 year fixed  75%  £995  7.00%  6.05%  -0.95% 
HBTL Mortgage 5 year fixed  75%  £1,995  New  5.66%    
HBTL Mortgage 5 year fixed   75%  £995  New  5.78%    

James Enos, national account manager for Hodge, said: “It’s been nearly five years to the day since we launched our first holiday let product at Hodge, and a lot has happened in the holiday market in that time.   

The reintroduction of our popular 2 and 5-year fixed products and the rate reduction on our 2-year product will give investors  more options. 

James added: “Despite the difficulties the holiday let market has seen in recent years, it is still a popular investment option for many. Our products also allow investors to rent their holiday lets on Airbnb and stay at their properties for up to 90 days with no minimum income requirements, increasing their popularity.”  

For more information on Hodge’s holiday buy to let mortgage products visit: https://hodgebank.co.uk/mortgages/holiday-buy-to-let/