Solutions for complex holiday lets

Our solutions

10TH MAY 2021

Solutions for complex holiday lets

Find the right holiday let solution with our new range of products.

At MHBS, our new holiday let products offer a simple solution for clients borrowing between £200k and £3m and are ideal if your client has complex circumstances, such as a property with multi-units or annexes. 

The products are easy to understand, with set prices and clear criteria, and affordability can be assessed at the outset with our straightforward rental coverage calculation based on holiday let income. Here’s an example of a loan we recently agreed for a client.

The case

Specialist Lending Manager, Claire, recently helped with an enquiry on behalf of a couple who wanted to purchase four holiday cottages on one title. They were also looking to remortgage an existing unencumbered holiday let to raise funds for the deposit.

Our solution

We agreed two separate loans, both were discounted products. For the more complex purchase of four cottages the pay rate was 4.24%, the simple remortgage attracted a pay rate of 3.49%. This solution reflected all of the clients’ requirements:

• Multiple properties on one title
• Interest coverage over 145% at the stressed interest rate. Employed and pension income in the background to support personal finances
• Interest only
• Unregulated
• Flat £995 product fee for the remortgage. For purchase, the product fee was a percentage of the loan
• Term beyond age 70
• Below 75% LTV

First-class service

When you choose MHBS, your clients’ case will be reviewed at our daily Credit Committee and we’ll give you a quick response you can rely on. We’ll also assign you a dedicated underwriter, who you can contact directly.

Here’s just one example of the five-star feedback we’ve recently received: “Market Harborough are an excellent lender who combine a truly common sense and pragmatic approach to their credit assessment of cases with a personal service that is second to none.”

Read more about our holiday let solutions or contact your Specialist Lending Manager to discuss an individual case.

This is a recent case example, pricing is tailored to your clients’ individual circumstances. Article details are correct as at 10 May 2021.