Shropshire Holiday Letting

Alternative Bridging’s new term loan programme has provided an active developer and investor with working capital secured by a first mortgage on a self-contained flat used for holiday lettings.

The borrower acquired an attractive period building and converted it into three apartments. Located near to the England / Wales border in a picturesque market town, with good communication, it is an ideal location for holiday lettings.

Two flats form part of the borrowers buy-to-let portfolio and are let on annual AST agreements and are separately financed. The third, the larger ground floor apartment has been used for holiday lettings for the past six months. Short term facilities needed to be refinanced to provide the working capital facility and a loan in the mainstream will not be available until the trading history has been established. ABC’s individual underwriting process, loans for people by people, has enabled them to be satisfied that debt service can be comfortably met.

The borrower’s broker is content that refinance can be achieved within three years and the term loan has been taken for this period. With a lower rate of interest than a bridging loan, the borrower has reduced operating costs and obtained the larger loan with security of finance until the income is established.