Aspiring homeowners helped by targeted holiday let lending restrictions
Page updated: 28 March 2024
To put home ownership in reach of more people, we will stop holiday let lending in North Norfolk and certain areas of North Yorkshire. This is part of a 12-month trial starting today, Thursday 28 March.
After considering all of the options and consulting with North Norfolk District Council and North Yorkshire Council, we’ve sought to balance local housing needs with the economic benefits tourism can provide.
Each authority has identified postcode areas where housing pressures are most serious and where holiday let lending should be restricted. Existing holiday let borrowers are unaffected.
What it means for our brokers
All the affected postcodes are now listed on a spreadsheet available on our holiday let product page.
We’ve updated our systems accordingly, but save yourself time by checking the spreadsheet before submitting a holiday let application, DIP or affordability check.
If you don’t check the list of postcodes before submitting a holiday let application, DIP or affordability check, here’s how we’ve amended our systems:
• Affordability Calculator: this doesn’t ask you to input a postcode, so any postcode that’s part of the trial won’t be declined at this stage. Please check the spreadsheet beforehand to make sure.
• For DIPs: any holiday let decision in principle will receive a conditional acceptance and you’ll be asked to refer to our holiday let page to see the full list of affected postcodes. You can then assess the application further.
• For full applications: any affected postcodes will be automatically declined in Mortgage Hub. Submitting a full application, even if it’s declined, will leave a footprint on a client’s credit file.
Overlapping postcode sectors
Some postcode sectors overlap with other authorities and are listed on the spreadsheet. If a postcode falls outside the remit of North Yorkshire or North Norfolk councils, we will consider a holiday let application subject to our usual underwriting checks.
If you would like further information, or have a question or comment, please contact your local BDM.
Our press release gives more information on our decision to restrict holiday let lending.
Please note:
Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.
This website is for use by FCA authorised intermediaries only. If you are not an FCA authorised intermediary and would like further information about our products or services, please visit https://www.leedsbuildingsociety.co.uk. If you are an FCA authorised intermediary and you reproduce any of the information on this website to be used with or to advise customers, then you must ensure that it complies with the Financial Conduct Authority's rules and guidance on financial promotions.