Hodge Bank has widened its holiday let criteria, increasing maximum loan-to-value to 80% and lifting its maximum loan size to £2m.

The specialist lender has also removed its six-bedroom limit, in a move aimed at landlords seeking larger properties with stronger income potential.

Hodge said the changes reflect demand in the holiday let market for bigger homes and more extensive amenities, as group stays and multi-generational trips become more common.

Emma Graham, business development director for Hodge Bank, said: “How we holiday is changing and that means the holiday let market has to adapt.

“Brokers are telling us landlords want to cater for bigger groups, whether that’s intergenerational family holidays, or groups of friends looking for a fully equipped Airbnb.

“Hodge offers fee free options on both Holiday Let two-year and five-year basis as we want to give those operating in the holiday let market as much flexibility as possible to suit each individual’s needs.”

The lender said it had worked with brokers to understand what borrowers are seeking from holiday let properties, particularly where there is demand for larger accommodation with features such as extra bedrooms, a pool or games room.

BROKER VIEW

Billy McCluskey, head of sales for Commercial Trust, said: “It’s fantastic to see Hodge take a major step into the 80% LTV Holiday Let market.

“With fewer lenders operating in this space, its move is a real boost for our landlords. At Commercial Trust, we know Hodge’s proposition can deliver substantial savings for our clients while offering the reassurance of partnering with a highly dependable lender.”

The updated criteria give brokers more scope when placing cases for holiday let landlords, particularly those targeting larger properties in a market where borrower requirements continue to shift.