Hanley Economic Building Society has entered the holiday let mortgage market with two variable discount products available up to 80% loan-to-value.

The mutual’s first holiday let range comprises a two-year variable discount mortgage with an initial pay rate of 5.54%, representing a 2.20% discount from its standard variable rate of 7.74%.

A second mortgage, discounted for the term of the loan, has an initial pay rate of 5.40% — 2.34% below the society’s present standard variable rate.

Both products are available for purchases and remortgages on a capital-and-interest or interest-only basis, subject to applicants meeting the society’s interest-only criteria. The minimum loan is £30,000 and the maximum is £600,000.

The range is open to expatriate applicants and permits foreign income. Borrowers may use the property personally for up to 90 days a year, while first-time landlords and properties marketed through Airbnb will be considered.

There are no geographical restrictions. Applications will be assessed individually by Hanley’s in-house underwriters without credit scoring, and the mortgages will be distributed through selected intermediary channels.

Samantha Ward (pictured), commercial director at Hanley Economic Building Society, said: “The holiday let market has changed considerably as the ways in which people own, use and generate income from these properties have become more varied.

“For us, that creates an opportunity to bring the type of individual underwriting approach we already apply across our proposition.

“It also reflects what we are hearing from brokers, who increasingly need lenders to understand the detail behind a case rather than make decisions based on a narrow set of standard assumptions.

“This is our first step into holiday let lending, so we will be listening closely to intermediary feedback and looking at how demand develops. That dialogue will be important in helping us understand where we can add most value and how the proposition should develop over time.”