Furness Building Society has recently announced the introduction of innovative mortgage products designed for holiday lets for investors across England, Scotland, and Wales. These new financial products are tailored to meet the growing interest in holiday home investments, presenting a range of options that cater to various needs and circumstances.
Furness is expanding its portfolio with two new mortgage options specifically for holiday let properties. These products are designed to make it easier for individuals to invest in and manage holiday homes across the mainland UK.
Attractive Fixed Rate Offers
The first offering includes a 2-year fixed-rate mortgage. Customers can choose between two attractive rates: a 5.99% rate for loans up to 65% of the property’s value (known as loan-to-value or LTV) and a slightly higher rate of 6.19% for loans up to 75% LTV. Both options come with a fee of £995, which can be paid upfront or added to the mortgage, providing flexibility in payment.
In addition to these 2-year plans, Furness is also presenting a 5-year fixed-rate option at 5.93% for loans up to 75% LTV, catering to those looking for longer-term stability in their investment.
Cashback and Flexibility
A notable perk of these new products is the inclusion of a £250 cashback offer, adding an extra incentive for potential borrowers. Moreover, Furness’s holiday let range stands out for its flexibility. It allows personal use of the property for up to 90 days per year, a feature particularly appealing to those who wish to enjoy their investment personally.
Innovative Approach to Affordability
Furness’s approach to calculating affordability is refreshingly flexible. It is designed to accommodate complex and multiple income streams, making it suitable for a wide range of financial situations. Customers can opt for mortgages on either an interest-only or repayment basis, offering further flexibility to suit individual financial plans.
Considering Rental Income
Alasdair McDonald, the head of intermediaries at Furness, emphasizes the unique aspects of these products. They are designed to consider various forms of income, including a combination of personal income and gross holiday rental income. Furness’s model primarily uses personal income but also factors in 50% of the rental income in the affordability assessment. This approach could be particularly advantageous for those with fluctuating or diverse income sources.
New Residential Mortgage Options
Alongside the holiday let products, Furness has also launched a range of residential mortgage products. This includes a competitive 4.64% 2-year fixed rate for mortgages up to 80% LTV, expanding options for traditional homeowners.