Hodge is making significant enhancements to its Holiday Buy to Let Mortgage criteria and reducing rates across most of its product range by up to 17bps.
The specialist lender is moving its five-year stress rate to pay rate and pound for pound stress rate to the maximum of 5.5% or pay rate + 1%.
It will also be providing a maximum loan size of £1.5m up to 75% LTV, offering debt consolidation up to 75% LTV and considering properties above and adjacent to commercial premises on Holiday Let applications.
As of February 14th, rates on Hodge’s Holiday Buy to Let range are therefore as follows:
| Product | Max LTV | Product Fee | Current Rate | New rate | Difference |
| HBTL Mortgage 2 year fixed | 75% | £995 | 6.45% | 6.28% | -0.17% |
| HBTL Mortgage 2 year fixed (fee free) | 75% | £0 | 6.60% | 6.75% | 0.15% |
| HBTL Mortgage 2 year fixed | 75% | £1,495 | 6.25% | 6.08% | -0.17% |
| HBTL Mortgage 2 year fixed | 75% | £1,995 | 6.15% | 5.98% | -0.17% |
| HBTL Mortgage 5 year fixed | 75% | £995 | 6.20% | 6.05% | -0.15% |
| HBTL Mortgage 5 year fixed (fee free) | 75% | £0 | 6.35% | 6.20% | -0.15% |
| HBTL Mortgage 5 year fixed | 75% | £1,495 | 6.00% | 5.85% | -0.15% |
| HBTL Mortgage 5 year fixed | 75% | £1,995 | 5.90% | 5.75% | -0.15% |
Emma Graham, business development director at Hodge, said of the changes: “We are pleased to be able to make these rate and criteria changes to our holiday let products at a time when the market is under a lot of stress from increased regulation and costs from local authorities.
“Our lighter touch underwriting stance on holiday let will hopefully make it easier for intermediaries to work with us, and ultimately help their clients get the mortgage and property they want.”
Emma added: “The holiday let market has gone through some ups and downs since the pandemic, but we still see these properties as a good investment for many.”
“This is reflected in our criteria changes including increasing our maximum loan size, considering properties above or adjacent to commercial premises and properties with annexes or two kitchens.”
