Hampshire Trust Bank (HTB) is to introduce a restricted holiday let product to its specialist offering.
The loan interest rate will be as high as 65% LTV (total loan value 67%), and the income coverage ratio for personal vacation rentals will be increased from 125% to 140%.
The bank said the move reflects its ability to adapt to changing regulations and market demands, giving brokers the tools to support clients in an increasingly complex market.
Alex Upton, managing director at HTB, mortgage and bridging specialist, said: “Holiday restrictions represent both the complexity and opportunity of today’s market. As planning rules tighten and tax reform comes into effect, investors need appropriate financial support to adapt and develop.
“This expansion demonstrates our commitment to providing brokers with the expertise and tailored solutions they need to help their clients succeed in this growing niche market.”
Andrea Glasgow, director of specialist mortgage sales at HTB, said: “We know that brokers are seeing increasing demand for restricted holiday lets as investors seek to diversify their investments and respond to market changes.
“What they wanted from us was clear – a product that reflects the complexity of this market, coupled with expert support and fast decision-making. This expansion ensures brokers can guide their clients with confidence, knowing that HTB offers a product they can trust tools and partnerships.
