top of page

ERG Private Finance Ltd - trading as ERG Finance is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority: FCA Number 460421. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority.

Securing a 75% Loan on a £1.65M Country Home with Holiday Let Income

Updated: Jul 5


Holiday Home Finance, ERG Finance

The Scenario

Our clients were purchasing a stunning countryside residence with two established holiday cottages within the grounds. The property was valued at £1,650,000, and a 75% loan-to-value mortgage was required to complete the purchase.


While our clients had solid employed income, affordability was a challenge based on this income alone. The holiday cottages were operational but not yet being run at full potential, and the declared income at the time did not reflect what the cottages could realistically generate.


Our Approach

We worked closely with both the clients and the lender to build a compelling case. This involved:


  • Clearly outlining the clients’ short- and medium-term plans for improving the holiday let business

  • Providing updated income appraisals from reputable holiday letting agents to demonstrate the realistic earning potential

  • Presenting a blended income strategy, combining both employed income and forecasted holiday let revenue.


Based on employed income alone, the clients would have only been eligible for a mortgage of approximately £500,000 - well short of what was needed. However, by incorporating the projected holiday let income, we were able to demonstrate sufficient affordability to meet the lender’s requirements for the full £1,237,500 loan (75% LTV).


Our Solution

The lender agreed to proceed based on the combined income, and the mortgage was structured on an interest-only basis. This gave the clients the breathing space they needed to settle into the property and gradually ramp up the booking levels across both holiday cottages.


The Outcome

Our clients successfully secured their dream home, with the finance structured to support their lifestyle and long-term goals. This case highlights our ability to deliver bespoke solutions, even where affordability is a stretch on paper.

bottom of page