Furness Building Society has cut its rate on selected holiday let products.

The mutual says the rate on its two-year 65% loan to value mortgage is 2.99%, down from 3.19%, with a £995 fee.

It adds, the rate on its two-year 75% LTV is 3.39%, a 0.2% reduction. Both offers launch today.

The Barrow-in-Furness based lender offers a free standard valuation and free legal fees for remortgages.

Borrowers in Scotland will receive a contribution of £150 towards these costs.

Its loans allow the property owner to use the premises for up to 90 days a year. These mortgages are available in England, Scotland and Wales, including the Isle of Skye.

Furness head of intermediaries Alasdair McDonald says: “With the staycation market increasing in popularity we’re sure brokers and their customers will welcome these lower rates which will further increase the rental yield enjoyed by the customer after what has been an incredibly tough 16 months for tourism”

The firm has also cut the rate on its two-year buy-to-let product at 75% LTV to 2.69%, down by 0.2%.