Ipswich Building Society has added a new two-year fix holiday let product up to 80 per cent LTV to its mortgage range.

The lender society says it has introduced the new product to meet recent demand in the short-term lettings market.

The holiday let deal is priced at 4.10 per cent until 31 March 2023, then reverts to SVR (currently 5.24 per cent).

The minimum loan available is £75,000 with a maximum loan of £500,000. An application fee of £199 and a completion fee of £950 apply.

This product is available with 60 days’ personal use, and is calculated using an average of low, medium, and high season rental income.

Ipswich Building Society chief executive Richard Norrington says: “The pandemic led to an increased number of staycations in 2020, and with popular holiday destinations in the UK already booked up for this summer, it looks set to continue in 2021 and beyond, especially with overseas travel rules currently unknown.

“It’s perhaps no surprise then that there is a demand in the buy-to-let market for holiday lets. However, whilst appetite for these mortgages is growing, the number of holiday-let products has fluctuated throughout the pandemic.

“Whilst we were already currently in the holiday let market with discounted rates, we were keen to respond to the desire for fixed rate deals. By increasing our offering here, we hope to provide more options for those looking to purchase, or remortgage a holiday let, especially for those looking to do so with a smaller deposit.”

All products have a CHAPS fee of £35 and a tiered valuation fee based on property value applies. Remortgage applicants receive a free valuation and access to fee-assisted legal services.

During the initial mortgage term, the society offers fee-free overpayments up to 50 per cent of the original loan amount.

For overpayments in excess of 50 per cent of the original loan amount, or early redemption, an ERC applies.