Hodge has trimmed the rate on its holiday let mortgage after increased demand for this product.

Its two-year holiday let mortgage (at 75% loan-to-value) has been reduced by 10 basis points, to give a pay rate of 3.7%, while its five-year loan has been cut by the same amount to 3.95%.

This cut follows Hodge’s move to reduce rates on its 50+ and retirement-interest-only mortgage products by between 20 and 30 basis points last month.

Recent research has shown an increase in broker queries about holiday let mortgages, with increased interest from property investors in the short-term let market, fuelled by an increase in Covid ‘staycations’.

Hodge business development director Emma Graham says: “The holiday let market has had a bumper year, with the pandemic and lockdowns restricting holiday choices for many and attracting new people to the market. As a result, it has been a popular mortgage product in a very competitive market.”

Hodge says it assesses all applications for these deals on a case-by-case basis and offers a flexible approach to lending, helping intermediaries secure the right mortgage for their clients.

The lender’s earlier 50+ and RIO reductions are:

A 50-plus mortgage five-year fixed-rate offer at 50% LTV at 2.70%, from 3.00%.

A 50-plus mortgage two-year fixed-rate loan at 60% LTV at 2.89%, from 3.19%.

A 50-plus mortgage five-year fixed-rate deal at 60% LTV at 2.90%, from 3.20%.

A 50-plus mortgage two-year fixed-rate discount offer at 60% LTV at 2.79%, from 3.09%.

And a RIO mortgage five-year fixed-rate loan at 50% LTV at 2.90%, from 3.10%.