Loughborough Building Society has introduced a holiday let offering, suitable for use on Airbnb properties, to its mortgage range.

The two-year product is available up to 75% LTV 1.95% variable discount, currently at 3.39%, with a £499 completion fee.

The deal can be used for purchase or remortgage of properties in England and Wales that are managed by a letting agent and used for short-term holiday lets.

Early repayment charges apply during the mortgage term and the product is not open to limited companies or portfolio landlords.

The lender calculates affordability using the average of high/low season projected or known rental yield with the standard buy-to-let interest coverage ratio (ICR) of 130% at 5.5%.

The Loughborough business development manager Ashley Pearson says: “Since the Coronavirus pandemic, overseas travel has become more difficult for many and the possibility of quarantine on return to the UK makes it almost impossible for most who are working. Holidaying in the UK has always been a great option so holiday let is an obvious next step for us”.

Last month, the Loughborough and BuildLoan launched two self-build mortgage products that feature advance and arrears stage payments.