Foundation has helped a broker secure funding for a holiday let in Burford, Oxfordshire.
The property forms part of a six-unit development and was valued at £205,000, with a mortgage requirement of £153,700.
The borrower, an experienced landlord, projected that rental income was between £19,863 and £24,277 a year, giving an interest coverage ratio of 176.58%.
Foundation had previously completed a case on the same site.
Occupancy was restricted to eight weeks and the property sits on a busy road, which raised marketability concerns.
After discussions with Foundation’s team, the broker decided Foundation’s holiday let proposition suited the case.
A commercial valuation was commissioned to reflect holiday let restrictions, standard loan-to-value (LTV) terms were used, and first charge security applied.
Exposure was limited to two units to manage concentration risk.
Nathan Goodridge, head of sales at Foundation, said: “This case demonstrates the importance of specialist lending when assessing holiday let investments that fall outside standard criteria.
“While there were a number of factors that required careful consideration, the property’s strong affordability, experienced borrower profile and robust rental projections supported a positive outcome.
“By taking a pragmatic approach, we were able to help the broker secure funding for their client and continue making mortgages happen.”
