The Teachers Building Society has launched a new two-year discounted variable rate mortgage specially designed for properties in the holiday let sector.

The mortgage, which is available for properties up to 75% LTV, is available for purchase and remortgage in England and Wales.

It has a maximum loan size of £750,000 and maximum term of 40 years.

An interest-only option is available with sale of property as the repayment vehicle.

The rental assessment for purchases is the average of low/medium/high x 30 weeks, while for remortgages is  100% of evidenced rental receipts in a 12 month period used.

The Rental Coverage is assessed at 135%.

Andy Yates, business development manager at the Teachers Building Society, said: “We’re pleased to be one of only a handful of lenders to offer specially designed mortgages for properties to be used as holiday homes.

“This new holiday let mortgage is just one addition to changes we have made over the last year or so, including opening up our lending to applicants of any profession, updating our lending criteria to include new income types, such as the ability to use 100% of NHS / Police allowances and overtime, clarification as to when stipend income is accepted and new criteria for bank nurses and locums.”