Leeds Building Society updates holiday let affordability assessment

Leeds Building Society has made changes to the affordability assessment for its holiday let products.

The company 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.

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.

“Holiday lets are already a popular option and this change will be welcome news for those who are looking to diversify their property portfolio in this direction, especially at a time when more of us are taking staycations.

“We continue to take a responsive and flexible approach to our product offering, reaffirming our commitment to the intermediary market.”

This follows a series of changes Leeds Building Society has made to its holiday let offering, including the addition of new 75% LTV products to the 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.

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