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holiday let purchase for first time landlord

Holiday Let Purchase for First Time Landlord

The Client: Keen to benefit from the high demand and yields, this first-time landlord sought to purchase a holiday let. She was employed full-time and owned her own home. 

The Property: A two-bedroom terraced house in a popular holiday destination in South West England. The property was perfectly situated for UK holidaymakers with easy access to local amenities, transport links, and the beach. 

The Finance: With a deposit from personal savings, our client required a 75% LTV holiday let mortgage to complete the purchase. 

The Challenge: The main challenge for this case would be sourcing a holiday let lender that would accept an applicant with no previous buy to let experience. While sourcing standard buy to let mortgages for first-time landlords isn’t too challenging, the additional work required to successfully manage holiday let properties means that most lenders require at least one years’ landlord experience.

The Solution: Using our extensive experience sourcing holiday let mortgages and our whole of market access, we could research and shortlist a few lenders that would potentially accept our client. Having identified which lenders offered the most suitable rates to maximise our client’s yield, we approached our first choice.

We put across a case that demonstrated our client’s strengths, who, although never having been a landlord, did own her own home. The property she’d chosen would be incredibly popular for holidaymakers and would be able to produce an income that would more than satisfy the mortgage repayments.

Comfortable with the application, the lender made a formal mortgage offer just a few weeks after submission, and our client is now on the way to owning her first investment property! Here are the details:

Property Details

Property value: £245,000

Loan amount: £183,750

LTV: 75%

Rate: 3.99% two-year fixed-rate

Term: 25 years, interest-only

Mortgage payment: £615 per calendar month

Lender arrangement fee: £1,250

Rental income: £800 per calendar month

Gross yield: 3.9% per annum

Application: SPV Limited Company

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

Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

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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.

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