Holiday let mortgage for Welsh Airbnb

What was the situation?

I was approached by my client who was looking to purchase a holiday let home, primarily for Airbnb purposes, in Coastal Wales.

The property was a lovely detached house, but needed modernisation. The client was looking to borrow just under £500,000 to complete the renovation and get the property ready for Airbnb staycations.

Coincidentally, the client’s great grandparents had owned the property over 100 years ago. Therefore, it had sentimental family value. This was an important property to secure, and I was keen to ensure we did all we could to help.

What was the issue?

The main complication was the holiday let aspect of the application. However, I was able to overcome that by using a lender I knew would be comfortable with this set up.

Also, with the property being located in Wales, there is a different way of processing property purchases than in England. I had to navigate these challenges whilst also working quickly to meet deadlines that would ensure the client did not lose the property.

What was the process?

The client had informed me that we were working towards tight deadlines. Knowing this, I used a lender who I knew had a good reputation for processing applications quickly. I was able to speak to the underwriters directly to explain the situation, and they advised me to use a home report, rather than having a survey instructed, which would save significant time.

What’s more is that following submission of the application, the rate decreased so I was able to change the applied product and arrange a lesser monthly payment if the application was successful.

What was the solution?

I was really proud to be able to secure an ‘Airbnb mortgage’ that allowed the client to purchase the property and renovate it before letting it out on a short-term, holiday let basis. This was achieved in under 2 weeks!

I successfully secured a 2yr fixed rate mortgage, at a competitive rate. There was the added bonus that the client was not required to pay the valuation fee as we progressed the application forward using an existing home report.

Following the successful completion, the client was thrilled! Now the property is back in the family and being rented out via Airbnb on holiday let basis, providing the client was additional income.

Lending solutions with LDN Finance

Are you exploring an Airbnb mortgage? Perhaps you’re looking at a holiday let property? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.