The number of holiday let mortgages available on the market has grown 45 per cent in the last six months, shows data from Moneyfacts.

In October 2020, there were 103 deals on the market from a total of 17 lenders. Today there are 149 deals, with 21 lenders offering them.

However, alongside this rise in options has been an increased in the average fixed rate for these mortgages – from 3.79 per cent to 3.95 per cent across the same time span.

And despite this recent spike in offerings, choice is still some way off that seen in March 2020 – 162 holiday let mortgages from a slightly lower 20 lenders – and the average fixed rate was 3.37 per cent.

Moneyfacts finance expert Rachel Springall says that borrowers “May have taken some time to reflect on staycations in light of uncertainties surrounding international travel and how a holiday let could be a worthy investment.”

She adds: “According to a recent survey by Hodge Bank, out of those purchasing a holiday home, 65 per cent take out a new holiday let specific mortgage and 35 per cent remortgage their existing home to finance their holiday home.

Springall believes that supply and demand will be an important consideration this year “for investors who feel staycations are here to stay”. She points to Rightmove statistics that show new listings stock down 25 per cent year-on-year.

“Any lack of holiday home opportunities will come as frustrating news for investors considering the return of holiday let deals on to the market, especially as sales figures nationally are rising and some consumers have more disposable income from lockdown and are therefore ready to invest,” she says.

“Data from PropertyMark cited that one in nine properties nationally sell more than the asking price, with recent figures hitting a five-year high.”