The Cumberland Building Society has cut rates on loans over £750,000 across its holiday let range, amid growing investor interest in this market.

The mutual offers two tiers of pricing in this area, standard and non-standard, depending on the complexity of the case.

It sells two-year variable and five-year fixed rate products.

The lender says its cheapest rate is now a two-year variable product with an initial interest rate of 3.74%. This comes with a £999 fee for loans up to £750,000 and a £1,999 fee for loans between £750,000 and £2m.

The Cumberland head of commercial lending Scott McKerracher says: “We have simplified our pricing structure, with rates for loans above £750,000 reduced to match those for lower loan sizes.

“With the staycation market anticipated to boom this year — and beyond — investors are showing a growing interest in holiday let property.”

McKerracher adds: “We’re seeing that reflected in our holiday let mortgage enquiry figures – with high volumes of appointments being booked through our website, combined with a steady growth in broker enquiries since the start of the year.

“We also saw our average case size for enquiries climb by 20% last month compared to the previous two years, so it was important to us to ensure we were catering for the increasing amount of higher value cases that we were seeing.”

The lender says it will consider cases such as occupancy restricted property and larger portfolios throughout mainland UK, and the isles of Anglesey, Arran, Mull, Skye, Lewis, Harris and Wight.

The building society adds it will lend up to £5m aggregate borrowing across a portfolio of properties.