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Holiday cottage

Self-Employed Builder Finances Wedding Accommodation Holiday Lets

The Client: A self-employed builder with no additional property investment experience. He had been letting out the property on a standard AST at £1200 per month for around 18 months prior to coming to us.

The Property: Initially bought in a dilapidated condition back in 2013, the client had spent a few years refurbishing the converted farmhouse to a lettable standard. There were several outbuildings on the plot which had the potential to be renovated into dwellings too, which in turn would increase the investment value of the property.

The Finance: The client came to us in order to realise a new business plan for the property. In the surrounding area were several popular wedding venues which attracted a significant volume of visitors, often requiring accommodation, to the area. Our client wished to alter the nature of the property to a holiday let and offer bespoke packages to those attending the weddings, thus increasing it’s yield to a very healthy 9%.

The client came to us because his existing lender did not finance holiday lets and he also wanted to raise funds in order to finance the renovation of the remaining out-buildings into further holiday let properties.

The Challenge: With this client there were three main challenges

  1. He was self-employed with minimum income levels
  2. He did not own any other property other than the investment as he was residing in his fiancées home, which was in her name
  3. The lender would need to, in addition to the refinance, release equity for the renovation of the additional buildings

Despite these hurdles, we were able to find a lender who did not require a minimum income or for the client to own another property. The application was assessed on the usual bank statements, proof of income and a rental projection from a local holiday lettings agency, making the process very straight forward for the client. Here are the details:

Property Details

Property value: £530,000

Loan amount: £318,000

LTV: 60%

Rate: 3.2%, 3-year discounted rate from Lender’s Standard Variable Rate

25-years, interest only

Mortgage payment:  £848 per calendar month

Lender arrangement fee: £1000

Rental income: £4000 per calendar month

Gross yield: 9% pa

Consultant: Robin Tait, 01625 416391


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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.