Leeds Building Society Changes Holiday Let Affordability Assessment
Borrowers wishing to purchase a Holiday Let property with a Leeds Building Society mortgage will benefit from changes in how it assesses rental income.
The Society will now evaluate affordability using an average of low, medium and high season expected rental income when considering applications for Holiday Let mortgages. The evidence will be provided by a letting agent on its approved list.
The change is intended to better reflect a Holiday Let’s earning potential, compared to the previous reliance on assured shorthold tenancy (AST) valuations.
Martese Carton, head of intermediary distribution at Leeds Building Society, said: “We’re always looking for criteria improvements as we deliver on our successful strategy to help customers less well served by the wider market. This improvement gives our intermediary partners a better solution for their clients using more accurate rental projections across the peak holiday season and the remainder of the year.”
This is the latest improvement the Society has introduced to support borrowers in recent months, including adding new 75 per cent LTV (loan to value) products to its Holiday Let range. It has also improved its minimum income requirements on this type of product and will now accept joint applicants with a total income of £60,000, where one applicant alone earns less than £40,000.