Commercial mortgage for holiday let landlord

A returning client, an experienced landlord-cum-developer, approached us for help in refinancing a large, newly built holiday let that he had funded with savings and a short term loan.

The property is a 6-bed house with four bathrooms located in Wales. Although an experienced developer and landlord, the client had only just started taking bookings for the holiday let, which would limit the number of lenders we could approach for finance. However, in the client's favour:

  1. The holiday let is in an area of high demand

  2. The client has a strong income

  3. The client has a large portfolio of rental properties (including holiday lets)

  4. The client has been a landlord for more than 15 years

These factors meant we were able to obtain the following offer from a high street lender.

Property value: £750,000

Loan amount: £250,000

LTV: 33%

Rate: 3.25% term tracker

Term: 15 years (1 year interest only & 14 years capital & interest repayment)

Lender arrangement fee: 1.5% (£3,750)

Mortgage payment: £625 (for 1 year) £1,400 (for remaining 14 years)

Rental income: £61,600 pa based on:

                           High season (10 weeks at £3,100) £31,000

                           Mid-season (7 weeks at £2,200) £15,400

                           Low season (8 weeks at £1,900) £15,200

Gross yield: 8.2% pa

Consultant: Gareth Richards, 01732 471627   

 

This is just one example of how we have helped secure finance for a client. If you have a similar scenario or something you'd like me to look at please call my direct line as detailed above or email me at garethr@mortgagesforbusiness.co.uk.

 

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Consultant