Hodge will now accept 30 weeks occupancy as a rental yield projection for its holiday let mortgages.
It previously allowed calculated rental income using an average of projected low, medium and high season weekly rental yield based on 26 weeks occupancy but has now increased this by four weeks to 30.
The bank has done this in reaction to the buoyant market, as well as the increasing rental yields across the sector.
Emma Graham, business development director for Hodge, said of the change: “Here at Hodge, we constantly talk to our broker colleagues and ask them how we can improve our products. They suggested a few things. We listened and now this new 30-week occupancy calculation change is being made.
“Our holiday let mortgages have been an amazing success since we launched in 2019, and we’ve seen a 173% increase in applications in 2020 alone. We believe this change in our criteria will help even more people get on the holiday let mortgage ladder and offer more accommodation to the UK holiday market.”
Emma added: “Another advantage of our holiday let mortgage is that we remain one of the only lenders who will allow customers to use websites such as Airbnb to let their properties.
“We believe this, and our flexible criteria and bespoke customer service has really made us stand out of the holiday let mortgage crowd. We will continue to provide this service to our brokers and their customers in the coming years.”
The change is proving popular with brokers, Joe Stallard of House and Holiday Home Mortgages said: “It’s fantastic to see Hodge moving back to a 30-week occupancy calculation with their holiday let proposition. This demonstrates confidence in this area of the market and will enhance their offering for clients.”