Legal & General Mortgage Club has partnered with Harpenden Building Society to offer an exclusive holiday let product.

The two-year discounted mortgage has an initial rate of 2.59% with a £100 application fee, an £800 completion fee, which can be added to the loan, and scaled valuation fees.

It is offered up to 80% loan to value on a repayment basis, or 75% LTV on an interest-only deal. There are no upper age restrictions and up to four borrowers per application are accepted.

An early repayment charge of 2% applies for the two-year period.

The firms say the mortgage can be used by borrowers who are purchasing a property as a holiday let that would have previously have been labelled as a consumer buy-to-let, “making lending criteria for the product far more attractive to customers”.

Harpenden says it takes “a holistic view of an applicant’s financial profile”, to ensure that customers have the funds to afford the mortgage and running costs for up to three months.

The mutual adds: “This crucially safeguards the customer’s ability to repay the loan, protecting against scenarios such as the unexpected absence of visitors, for instance.”

Also, the new product has no restrictions on the location of the property, within England and Wales, with properties adjacent or above commercial buildings also accepted. Gifted deposits from a family member are also accepted, and a personal usage allowance of up to 90 days has been introduced.

Legal & General Mortgage Club head of lender relationships Danny Belton says: “Demand for holiday let investments are still surging and we are proud to partner with Harpenden Building Society to respond to this growing appetite in the market with our latest discounted exclusive.

“With a potential rate rise on the horizon, this exclusive offers advisers welcome access to another competitively priced product, widening the choice they can offer to borrowers looking for holiday let solutions.”

Harpenden Building Society head of distribution & marketing Emily Smith adds: “With the demand for holiday lets having increased over the last 18 months, this product offers a great rate for customers, and includes the added benefit of personal usage for 90 days.

“Additionally, at Harpenden, our mortgages continue to be individually underwritten, enabling us to grasp a customers’ specific and individual needs, however complex they may be.”