Loans for Suffolk’s would-be holiday home owners
- Credit: CAROL WRIGLEY
Ipswich Building Society is boosting Suffolk tourism by offering a new range of mortgages especially for people who want to buy holiday homes.
The holiday home buy-to-let mortgages are available for buyers in East Anglia and beyond who want to buy a first or additional rental property.
Holidays in the UK are growing with seaside and countryside/village homes making up 55% of `staycations' in 2018, according to official figures.
Chief executive of Ipswich Building Society Richard Norrington said: "It's no surprise that properties located within rural settings and coastlines are the most popular holiday let destinations.
"I am confident that our heartland region of Suffolk and the surrounding counties will be of keen interest to people thinking about buying a holiday let property. Brimming with beautiful countryside and coastal locations, this area generates high demand from UK tourists seeking a 'staycation', as well as foreign holidaymakers looking to discover a piece of rural Britain."
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Applicants must already be homeowners in order to be considered for one of these loans.
They can also use the properties for their own holidays, for up to 60 days a year.
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First-time and existing holiday home owners can apply for loans of up to 80%, up to a maximum 25 year term.
There is a minimum loan of £75,000 and a maximum loan cap of £500,000, as well as a minimum property value of £100,000.
Loans are restricted to single properties and are not available for holiday parks, houses of multiple occupancy or AirBnB lettings.
Applicants will also need to give evidence of the rental return or anticipated revenue from the holiday property.
A minimum age of 21 applies for an existing property landlord and 30 for a first-time landlord.
Kate Ley, head of mortgage sales at Ipswich Building Society said: "Our customers are always at the heart of our product development process. We hope that by applying a competitive minimum income cap and accepting pension income when assessing affordability, we can help retired applicants with their holiday let decisions as well as providing options for younger applicants, such as those first entering the holiday let market."
The products are available across the Eastern Counties including Suffolk, Norfolk. Essex and Cambridgeshire.
Tim Ripman, of Best of Suffolk cottages, said: "We think it is a great idea and we look forward to supporting what Ipswich Building Society is proposing.
"We think it is very exciting. The tourism trade is growing in Suffolk. We are now at 400 plus properties and looking to take on more to meet demand.
"We hope to work with Ipswich Building Society for the benefit of our owners and guests.
"Our bookings for the first half of the year were 11.5% up overall."