The product is available exclusively through Legal & General’s Mortgage Club and is suitable for landlords (both individuals and limited companies) looking to let out properties on a short-term basis without the need for an assured shorthold tenancy (AST) agreement.

The two- and five-year fixed rates start at 2.99% and are available up to 75% LTV for limited companies and individuals, with no minimum income required.

“Considering the growing trend for Airbnb-type offerings, our new short-term let product will provide landlords with increased flexibility as we head into the summer season,” said Andrew Ferguson, commercial director at Foundation Home Loans (pictured above).

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“However, there is equal demand for short lets from relocating corporate tenants, people who are testing out a residential area before buying, contract workers and homeowners needing temporary accommodation while undergoing renovations.”

Andrew Montlake of Coreco added: “More and more landlords have been looking at the short-term rental market, especially with the rise of Airbnb, something that Foundation [has] clearly listened to and it is refreshing to see a lender taking an innovative approach to provide products that clients really want.”

Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “Foundation Home Loans [has] worked with Legal & General Mortgage Club and – following feedback from our members – [has] delivered this new exclusive product. 

“Innovation like this is most welcome as it will add benefit to brokers and their customers.”