The number of holiday let mortgage product options available to buy-to-let investors grew from 74 in August 2020 to 186 in September this year, Moneyfacts data shows.
Across the same time frame, the number of lenders offering this type of mortgage increased from 14 to 25, the data also shows.
Despite there being more products to choose from, rates have gone up – the average holiday rate in 3.53% in August 2020 and lies at 4.14% as of September this year.
The data firm also points to Hamptons International data in its report, which states that there were 1,404 new holiday let incorporations within England, Scotland and Wales between January and June this year.
“[Hamptons International] recorded this as the highest number since its records began in 2007, an increase of 83% compared with the number of holiday let companies set up in the whole of 2020 and 119% more than in 2019,” says Moneyfacts finance expert Rachel Springall.
Springall adds: “It’s positive to see a rise in holiday let product choice for landlords over the past few months, but the market is still relatively niche as there are less than 200 deals available.
“As the demand for staycations remains evident, it would not be too surprising to see more growth in this market in the months to come.”
