Dudley Building Society has launched a new holiday let product for remortgage only.

The deal is available up to 70 per cent loan-to-value and a maximum of £500,000.

The product is a discount variable for term with a starting rate of 3.84 per cent.

It tracks the lender’s standard variable rate of 5.49 per cent with a discount of 1.65 per cent.

Dudley will apply its existing buy-to-let rules and evidence of rental income and maintenance costs will be required.

Borrowers will not be allowed to put the property to residential use, nor will they be permitted to lease it out on a room-by-room basis.

Overpayments of up to 20 per cent per year are allowed.

The lender will not impose an upper age limit and borrowers who are in or approaching retirement will be considered.

The launch comes after the lender announced it would be making a phased return to lending at the end of August.

Since then it has launched Right to Buy, shared ownership and self-build products.