Scott and Helen: Holiday-Let case study
Helping a Holiday-Let dream to come true
Who did we help?
Scott and Helen have a successful portfolio of Buy-to-Let (BTL) properties while also being directors of their own recruitment company.
They take very little income from the business as they have 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 Scottish Highlands as they are both very fond of its beautiful scenery.
"They take very little income from the business as they have modest outgoings which are largely covered by their BTL income and modest salaries."
What did they need?
Scott and Helen were considering expanding their BTL portfolio but following a recent holiday, realised they would much sooner buy a Holiday-Let property in Scotland that they could also use themselves.
Why were they facing challenges?
There are far fewer lenders that offer Holiday-Let mortgages and those that do, often don’t allow personal use or lend on properties based in the Highlands.
In addition, Scott and Helen’s income was relatively complex and failed to meet the requirements of most lenders operating in this specialist market.
How did we help?
We understand most Holiday-Let applicants will want to use the property themselves and therefore allow up to 90 days a year for personal use.
We also assess income on pre-tax profit as we recognise that some people don’t want to remove all the profit from their business. Last but not least, we lend in the Highlands. We agreed on a 75% 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 our Holiday-Let mortgages help one of your clients? Give our Furness for Intermediaries team a call on 0800 988 1561 or contact your Business Development Manager.