Market Harborough Building Society has added two limited edition three-year holiday let products to its range.  

The building society says the loans are open to purchases and remortgages, with discount rates starting at 5.34%.   

The firm “caters for regulated and unregulated holiday let scenarios”, with loans ranging between £200,000 and £2m, which carry a £299 application fee.  

It will consider complex cases and unusual properties, such as listed buildings and non-standard income, as well as foreign currency and investments.  

It adds that its holiday let range allows limited personal use and accepts Airbnb properties. They can also be combined with the mutual’s other products, such as expat and multi-generational deals.  

Market Harborough Building Society head of sales Richard Saunders says the offers come at a “challenging period for the mortgage market where good news can be hard to find.”  

The offer follows inflation yesterday falling to a 16-month low of 7.9% in the year to June, according to the Office for National Statistics, from 8.7% in the year to May.    

Financial markets are betting that this ease in the rise of the cost of living will reduce pressure on the Bank of England to aggressively lift the base rate, currently at 5%.  

Investors forecast a peak base rate of 5.75%, compared to predictions earlier in the week of the rate hitting 6.5% next March.