We were approached by a broker whose clients were looking for finance to help them purchase a four-star, eight-unit holiday complex near the skiing resort of Aviemore in the Cairngorms.

The clients are a married couple. She has a small amount of hotel management experience and he is a self-employed accountant. Neither has any experience of operating a holiday let business.

To assist with purchase, the couple planned to use a deposit given to them by a family member, sell their home and move into the small owner’s accommodation on site.

The broker, who mostly specialises in residential mortgages, asked for our help in finding a suitable lender because of the complexity of the case and our direct access to the specialist property lenders. We needed to find a lender that would accept:

·         A business located in rural Scotland

·         Borrowers with no specific sector experience

·         A gifted deposit

·         A business with owner’s accommodation on site

After informal conversations with several lenders, we started negotiating with one which takes a very hands-on, pragmatic underwriting approach. We helped the broker and his clients to put together a comprehensive business plan and supporting CVs before submitting the loan application.

The valuation confirmed that the complex was ripe for further exploitation as detailed in the couple’s business plan, and after a bit of to-ing and fro-ing, and because the couple only required a relatively moderate loan to value, the lender offered the following terms: