Roma Finance has issued a new holiday let and serviced accommodation tracker product, citing a projected increase in domestic holidays.

The product comes in two forms: 65 per cent LTV at 4.89 per cent plus the base rate or 70 per cent LTV at 5.39 per cent plus the base rate.

It commands an arrangement fee of 1.95 per cent and allows for a maximum loan of £500,000.

Borrowers may choose from interest-only options and can ‘top slice’ rent from alternative provable income.

Roma adds that existing borrowers with the lender can move from a bridge to term product easily with a Roma solicitor acting through dual representation.

Yesterday, Monmouthshire Building Society launched a series of holiday let deals for individuals, joint applicants and limited companies.

Roma Finance managing director Scott Marshall says: “Holiday lets can provide property investors with another income option rather that the buy-to-let route which has seen a lot of changes in recent years.

“Monthly rental income and yields can be higher than many other forms of property investment as renters are looking at the location of the property and using it to visit local beauty spots and landmarks.

“We’ve seen an increase in enquiries about this type of finance on well-located houses and apartments and the ‘staycation’ is also proving to be a popular choice for many.”