Funding delivered for multiple end goals in the holiday let market

Loan Amount:
£580,000

Property Value:
£1,014,000

LTV:
56%

Demand for holiday lets has ramped up in recent years with the emergence of staycations and flexible working. Property investors can take advantage of this but in such a competitive market, they need to be on the ball for a chance at success.

One such investor sought us out for refinancing for a number of holiday lets. Our funding was to be used for several different obligations and plans and as such, our underwriter had to ensure everything came together in a coherent plan.

Not only did we need to make sure the borrower’s current plans made sense, we also had to ensure that their long-term goals were achievable. We dug into the details to find a way forward.

Plate spinning

The borrower planned to use our funding for three separate goals. Our capital was to be used to cover an existing facility, carry out cosmetic refurbishments on one of the securities, and invest in new features.

Given how complicated this could all get, our underwriter focused on the underlying properties’ potential. As we analysed the details, we confirmed that the properties were (and would continue to be) generating good yields, were in a desirable location, and could have fast turnaround times for renting and/or selling.

Also, we ran checks that confirmed many banks, building societies, and other lenders could provide long-term finance for holiday lets. This reassured us that the borrower’s refinancing exit strategy was solid. With all the details covered, we provided the funding required.

Standing out in a crowded market

While the holiday let market may be saturated in places, short term rentals are still proving popular with investors. To stand out, many investors are going to have to invest in their assets, and make them as desirable as possible.

Fortunately, we have many tools available that can help with this. On top of our standard acquisition products, we also have refinancing options, refurbishment loans, and second charge funding at the ready.

No matter how complicated or nuanced an investor’s plans may be, we’ll likely have the right financial product available for them.