Penrith Building Society has added two niche products for expat holiday lets and for properties with an annex or unit that can be let out separately from the main building.

The lender has a distribution model which is restricted to brokers within its heartland area and those who belong to its selected panel of networks and clubs.

Its catchment area is Cumbria, Yorkshire, Tyne and Wear, Northumberland, Durham and Lancashire, and its nationwide intermediary partners include appointed representatives of Mortgage Advice Bureau, Sesame, The Right Mortgage Network, as well as directly authorised advisers who are members of PMS Diamond Club and a number of other groups.

Penrith’s new expat holiday let product is available to first-time landlords including those who have never owned their own home before. 

Borrowers are allowed to occupy the property themselves for up to 60 days per year.

The lender will consider applications from clients across Asia and the Middle East as well as Australia and New Zealand, but clients in Europe are not eligible.

Brokers should contact the lender for queries about which other countries it may be willing to accept.

The borrower must have an income of at least £40,000 or the local equivalent.

Applications will be assessed on the average of low, medium and high season rental yield and the maximum LTV is 70%.

The product is a three-year discounted rate of 4.25% tracking the lender’s standard variable rate, which is currently 4.75%.

It has an application fee of £249, product fee of £1,350 and variable valuation fee. 

Loans are available from £75,000 up to a maximum of £500,000.

The second specialist product launched by Pentrith is a multi-unit mortgage, which is designed for properties where a proportion of the main building, separate annexe or dwelling will be let out.

Long-term leases, licences and commercial letting are not acceptable. 

At no point can the full property be rented out and at least 40% of the overall floor area must be occupied by the owner. 

It does not allow houses in multiple occupancy.

The maximum LTV on capital repayment is 80% and the maximum on interest-only is 50%.

Penrith is offering a three-year discount from the SVR with a current pay rate of 3.49%.

The deal has an application fee of £249, product fee of £800, variable valuation fee.

Loans are available from £30,000 up to a maximum of £500,000.

Head of intermediary Ed Appleby says:  “The Society has offered residential and buy-to-let mortgages for expats for several years. 

“This new expat product was designed to offer expats the opportunity to take advantage of the current staycation boom in the UK.

“Our Expat Holiday Let mortgage is competitively priced and the eligibility criteria is very generous – with first time buyers, first time landlords and non-owner occupiers are eligible to apply.”

He adds: “Brokers may struggle with unusual properties that feature more than one kitchen or have a self-contained annexe. 

“Our Multi-Unit Mortgage is perfect for clients looking to purchase or remortgage a home with an annexe or more than one unit on the same title.

“It is important to clarify that this is not for houses of multiple occupancy or where there is a commercial element to the dwelling.

“If you’re unsure whether a property would meet our criteria, then get in touch and we’d be happy to assist.”