IMB Blog

Assisting a Holiday-Let Dream To Come True

Who did we help?

John & Brenda have a successful mortgage portfolio of Buy-to-Let (BTL) properties while also being directors of their own manufacturing firm. They make the components for all kinds of electrical appliances. They have always had a keen eye when it comes to property. They first bought their first buy to let over 30 years ago and have steadily grown their portfolio to over 15 different styled properties. Ranging from 2 bed apartments, 2 & 3 bed terraced properties and 2 and 3 bed semi detached properties, they even got a mortgage secured recently against a 12 floor London city apartment. This most recent acquisition was the jewel in the crown and the couple were helped by the firm that they have used for a few years now, a locally based firm called Independent Mortgage Brokers based in Halifax.

They take very little income from their own business as they have relatively modest outgoings which are largely covered by their BTL income and modest salaries. They only draw dividends on a ‘when needed’ basis. When they’re not working, they frequently visit the Norfolk Broads as they are both very fond of its beautiful scenery. They are thinking about purchasing a narrow boat and love the freedom this type of holiday provides. They enjoy long walks with their dogs Frank & Rodney, they are both getting on in years now, but they couple really do enjoy walking the dogs.

What did they need?

John & Brenda have been considering adding to their buy to let mortgage portfolio but following a recent holiday, realised they would much sooner buy a Holiday-Let property in Norfolk that they could also use themselves.

Why were John & Brenda facing mortgage challenges?

There are far fewer lenders that offer Holiday-Let mortgages and those that do, often don’t allow you to personally use the property for your own recreation Some lenders won’t even lend on properties based in Norfolk.

Income was a big issue: John & Brenda’s income was relatively complex and failed to meet the requirements of most lenders operating in this specialist mortgage market.

What did John & Brenda do?

Of course, they spoke to their independent mortgage brokers. They were able to understand and explain to John & Brenda that most Holiday-Let applicants won’t allow them to stay at the property themselves. However, after that initial chat the research that Independent Mortgage Brokers did, enabled them to locate a lender and come up with a solution for the couple that would allow them to use the property themselves and therefore they were able to occupy the property for up to 90 days a year for personal use.

They discovered that the lender would also assess income on pre-tax profit as they recognised that some people don’t want to remove all the profit from their business. Last but not least, they also discovered that the mortgage lender would also lend in Norfolk. Independent Mortgage Brokers pulled the deal together and have now agreed on a 75% loan to value (LTV) mortgage based on the provision of two years’ accounts together with an assessment of potential holiday rental income based on mid-season average figures.

Could a Holiday-Let mortgage be right for you?

If the answer is yes, then why not follow in the footsteps on John & Brenda. Make the right choice when it comes to your mortgage arrangements. Ask the experts. Ask Independent Mortgage Brokers to find you your perfect financial solution for your mortgage needs.


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Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of our Independent Mortgage Brokers to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisers working for or with Independent Mortgage Brokers are fully qualified to provide mortgage advice and authorised and regulated by the Financial Conduct Authority. All our independent Mortgage Brokers will offer advice specific to you and your needs and circumstances. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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