Buckinghamshire Building Society has cut rates on its two-year fixed holiday let mortgage to 5.99%.

The product is available for both purchase and remortgage cases for properties in England and Wales.

The deal is fixed until 28 February 2025 and is available up to 75% LTV. on loans for £50,000 to £750,000.

Applications accepted from individuals or limited companies and the property must qualify as a Furnished Holiday Let under the HMRC definition, i.e there must be sufficient furniture provided for normal occupation and visitors must be entitled to use the furniture.

Properties located on holiday parks/complexes, B&B, Airbnb, flats, leasehold properties and properties that have an occupancy restriction are not accepted.

Buckinhamshire Building Society head of mortgage sales Claire Askham says: “Although holiday let products might make you think exclusively of a hot Cornwall beach in the middle of summer, we’ve actually seen a high level of enquiries for this type of mortgage throughout November and the beginning of December.

 “The demand for UK based holiday lets has risen dramatically over the last few years following Brexit and the Covid pandemic, making ‘staycations’ more popular than ever.

“These factors, combined with diminishing returns on tradition buy-to-let properties due to changes in taxation and increased regulation, has resulted in investors diversifying their portfolios and looking at areas such as holiday letting more favorably.”