The new two-year fixed rate mortgage has a rate of 4.10% and offers borrowers 60 days’ of personal use for their property. It is calculated using an average of low, medium and high season rental income.

Richard Norrington, CEO of Ipswich explained while the demand for holiday lets was high within the buy-to-let sector, product choice had been inconsistent throughout the pandemic. As such, the building society wanted to expand its offering in this arena.

He said: “The pandemic led to an increased number of staycations in 2020, and with popular holiday destinations in the UK already booked up for this summer, it looks set to continue in 2021 and beyond, especially with overseas travel rules currently unknown.

“It’s perhaps no surprise then that there is a demand in the buy-to-let market for holiday lets. However, whilst appetite for these mortgages is growing, the number of holiday let products has fluctuated throughout the pandemic.

“Whilst we were already currently in the holiday let market with discounted rates, we were keen to respond to the desire for fixed rate deals. By increasing our offering here, we hope to provide more options for those looking to purchase, or remortgage a holiday let, especially for those looking to do so with a smaller deposit.”

The two-year fixed rate holiday let product is priced at 4.10% until 31 March 2023, then reverting to SVR (currently 5.24%). It is available at 80% LTV with a minimum loan of £75,000, a maximum loan of £500,000, an application fee of £199 and a completion fee of £950.

All products have a CHAPS fee of £35 and a tiered valuation fee based on property value applies. Remortgage applicants receive a free valuation and access to fee assisted legal services.

During the initial mortgage term, the building society offers fee-free overpayments up to 50% of the original loan amount.