Swansea Building Society reduces buy-to-let and holiday let rates

Swansea Building Society has reduced its interest rates on buy-to-let and holiday let mortgages while highlighting its flexible approach to lending on these types of mortgages.

It has reduced its rates to 3.55% variable (previously 4.25% variable) on mortgages with a loan-to-value ratio of up to 60% and to 3.95% variable (previously 4.75% variable) on mortgages with a loan-to-value ratio of up to 70%.

It has also changed the calculation used to stress test the mortgage payment for such products to reflect the tax status of the main applicant.

Unlike some lenders, the Society will consider income from Airbnb lettings. It will also accept projected income and will consider unusual properties on both buy-to-let and holiday let cases.

The Society also revealed that it has received a big increase in enquiries for holiday let mortgages in particular in recent months, which appears to be a response to ongoing restrictions on overseas travel due to the Coronavirus.

Swansea Building Society’s four branches and Head Office have all remained open during the Coronavirus crisis, while following guidelines around social distancing.

Alun Williams, Chief Executive of Swansea Building Society, said:

“We are proud that we have remained open for both our savings and mortgage customers through the crisis, supporting our members in every way we can. As lockdown now eases, we are seeing an uptake in enquiry levels especially around the more specialist mortgage areas such as holiday let and self-build and we are delighted to be able to lower our rates on buy-to-let and holiday let mortgages in particular.”