"In basing our affordability calculations on reasonable projections for income based on letting a property out as a holiday let, rather than what it might achieve on an AST, Castle Trust Bank can help investors secure the leverage they need to achieve their investment aspirations"
- Anna Lewis - Castle Trust Bank
Castle Trust Bank has completed an 80% net LTV bridging loan to finance the purchase and refurbishment of a 5-bedroom detached house in Devon, to be used as a holiday let, using projected holiday let income to assess affordability, which was 250% higher than AST.
This enabled Castle Trust Bank to advance the loan needed to complete the initial purchase and the refurbishment at net 80% LTV.
Once the works were completed and the property was ready to be used as a holiday let, Castle Trust Bank then remortgaged the loan onto a serviced bridge to allow time for the client to gain a track record before refinancing onto a longer-term product.
Anna Lewis, Commercial Director at Castle Trust Bank, said: “Holiday lets continue to be a popular route for property investors, but the market is a competitive space and properties need to stand out to attract visitors. Buying a large property in a desirable area and refurbishing it to a high standard is one way that investors can achieve stand-out.
"In basing our affordability calculations on reasonable projections for income based on letting a property out as a holiday let, rather than what it might achieve on an AST, Castle Trust Bank can help investors secure the leverage they need to achieve their investment aspirations.
"This is further helped as we offer net LTV calculations, meaning that fees and interest can be added to the loan above the maximum LTVs.”
