Yorkshire Building Society’s commercial lending arm has launched a new mortgage deal for holiday lets.

YBS Commercial Mortgages is offering the product to limited company borrowers looking to invest in UK holiday hotspots.

The lender believes such destinations stand to flourish in the post-lockdown economy.

It cites figures from Visit Britain which show that Brits took more than 99 million overnight trips in England during 2019, spending £19.4bn.

YBS Commercial is already established as a niche limited company buy-to-let lender and its new product will focus on the South Coast, the South West, Wales and the Lake District.

It is offering a five-year fixed rate at 3.85 per cent for loans up to 75 per cent loan-to-value with a maximum loan amount of £1m.

Since the recently announced stamp duty holiday, queries from investors wanting to buy holiday lets are reported to be up 25 per cent in some areas as the UK’s domestic tourism sector benefits from restrictions on foreign travel.

YBS Commercial Mortgages regional director Allan Griffiths says: “We know the UK tourism industry has been badly affected by the coronavirus pandemic and subsequent lockdown, but as restrictions ease, staycations are soaring in popularity. 

“We hope that the launch of our new targeted product for this sector specific need will help to support the tourist industry in these areas.

“Our flexible, personal service model allows us to tailor loans to suit the individual needs of our borrowers. 

“My team and I are looking forward to supporting borrowers with specific plans to invest in properties specifically for holiday letting.”