Skip to Main Content
Part-time landlords purchase first holiday let in Cornwall

Part-time landlords purchase first holiday let in Cornwall

The clients: A couple looking to make their first holiday let purchase. One applicant is a HR manager, the other a homemaker who also receives a disability allowance.

The property: A three-bed terraced house located in one of Cornwall’s tourist hotspots. The couple were hoping to purchase the property and rent it out to holiday makers.

The finance: The couple had managed to save a deposit of £78,000 and were looking to borrow £180,000 (70% LTV). Our challenge was to find a lender that accepts: 

  • Applicants with no holiday letting experience – It’s easier to get finance if you have experience in this sector.
  • A new holiday let business – Established holiday lets pose less risk as they can be supported by trading accounts. Fewer lenders are interested in properties that are not already holiday lets.

We took the case to a particular building society which we know is willing to take a pragmatic approach and after some initial negotiations we obtained an agreement in principle and a mortgage product with no lender arrangement fees.

The application: We worked with the client to collate the necessary documentation and also helped them draw up a detailed business plan before submitting the application.

Before agreeing the deal, the lender then came back to us requiring more supporting information about the rental income over a 30—week period broken down into what could be realistically achieved during low, mid and high season . We obtained written confirmation of this breakdown from a local holiday letting agent and a formal mortgage offer was duly issued.

We then worked with the lender and the solicitors to get the deal over the line as quickly as possible. Just 10 weeks later our clients received the keys to their new holiday let.

Here are the details:

Property Details

Property value: £258,000

Loan amount: £180,000

Deposit: £78,000

LTV: 70%

Rate: 2.70% 5 Year Fixed

Term: 20 Years Interest only

Lender arrangement fee: Nil

Mortgage payment: £405 pcm

Rental income: £1,500 pcm

Gross yield: 7% pa

Consultant: Gavin Elley, 01625 416398


Get in contact with us: 0345 345 6788 or ...

Submit an enquiry
Arrange a call back

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

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

© Copyright 2022. All rights reserved.

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.