The new product is a 2-year fixed rate at 3.69% up to 75% loan-to-value (LTV).

The Cambridge has also reduced the rate on its 5-year fixed rate mortgage from 4.00% to 3.79% and its 2-year discounted mortgage from 3.39% to 3.34%.

There are no application fees and completion fees have been reduced from £1,500 to £999 across the range.

In addition, the mutual now uses an average of the projected low, mid and high season weekly rental yields, multiplied by 30 weeks to calculate the annual rental income.

Tracy Simpson,  head of lending at The Cambridge, said: “We’re excited to add another great product to our range of competitively-priced holiday let mortgages, as well as making it cheaper for customers to complete.”

“All loans are 75% loan to value, between £50,000 and £500,000 and are available for purchase, remortgage, product switches and further advances.”

All mortgages from The Cambridge are available on properties across England and Wales.