The Leeds Building Society mortgage is making changes to how it assesses rental income for holiday lets.
The mutual will now evaluate affordability using an average of low, medium and high season expected rental income when considering applications for holiday let mortgages. The evidence will be provided by a letting agent on its approved list.
The change is intended to better reflect a holiday let’s earning potential, compared to the previous reliance on assured shorthold tenancy (AST) valuations.
Martese Carton, the Leeds Building Society’s head of intermediary distribution, said: “We’re always looking for criteria improvements as we deliver on our successful strategy to help customers less well served by the wider market.
“This improvement gives our intermediary partners a better solution for their clients using more accurate rental projections across the peak holiday season and the remainder of the year.
“Holiday lets are already a popular option and this change will be welcome news for those who are looking to diversify their property portfolio in this direction, especially at a time when more of us are taking staycations.
“We continue to take a responsive and flexible approach to our product offering, reaffirming our commitment to the intermediary market.”
