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.

FAQs

Can I refinance an existing loan and upgrade a holiday let in one transaction?

Yes. We understand that holiday‑let investments often involve multiple objectives, such as refinancing, refurbishment, and adding amenities. By structuring a single bridging loan, we can help you clear existing debt, carry out cosmetic works, and fund revenue‑boosting additions like a hot tub or conversion, all within one streamlined facility.

Will you fund a holiday let if I don’t yet have tenants in place?

Yes. Our underwriting looks beyond occupancy to assess rental demand, projected income, and exit strategy. You don’t need to have bookings confirmed before borrowing. As long as the property has holiday‑let planning approval and your financial model is robust, we could work with you to fund refurbishment or expansion projects.

What makes holiday‑let lending different right now?

Holiday‑let demand surged after the pandemic, increasing appetite for staycations and family getaways. As a result, lenders are tightening criteria, especially around income stability and exit routes. Specialist bridging lenders like us are more flexible and able to structure loans that support the fast‑moving holiday‑let market, helping clients complete upgrades and start earning quickly.

How do you tailor repayment terms for holiday‑let projects?

We offer short‑term funding that’s aligned with project timelines. With products like Bridge Fusion, you can access interest‑only or rolled‑up payments during the build phase, then refinance into longer‑term BTL mortgages once the property is trading. That adaptability ensures your repayment path matches income generation and exit intentions.