Holiday Let Purchase (October 2009)

Client approached MFB to fund a holiday let in the Lake District.

The challenge here was that the provision of funds for holiday letting has been severely restricted by buy-to-let lenders in the last 18m. In addition we needed a lender that would consider the holiday letting income rather than assess the borrowing amount based upon a single ‘family let’ basis. To compound the issue the client was working abroad for a multi-national company.

After much searching MFB were able to source a BTL mortgage through a reputable building society on the following basis:

2 year fixed rate 5.99%
Purchase price £292,000
Loan amount £175,000 (60% ltv)

Despite the client being abroad we were able to provide the lender with the necessary information to underwrite the case. The property was valued and because of the evidence of previous holiday letting the enhanced rental income was taken into consideration. The offer was issued shortly afterwards.