The Intermediary – July 2026 - Flipbook - Page 86
B RO K E R B U S I N E S S
Case clinic
landlord scenario. Income calculations would be
generated using a rental income projection from
a local holiday letting company, where an average
would be taken from the seasonal fluctuations.
MOLO
Molo can consider this. We assess holiday lets on
a standard buy-to-let basis, so the cottage works
anywhere in England or Wales, and previous
holiday let experience isn’t needed.
First-time buyers and landlords are acceptable,
including through a limited company, with the
property managed through a holiday letting
company. We do not allow personal use, as that
would take it outside our buy-to-let basis.
easily within our criteria. We don’t require any
previous holiday let experience, so that wouldn’t
be an issue either.
In addition, we allow up to 60 days’ personal
use for holiday lets which sounds like it would suit
the applicant.
The variation in projected income isn’t unusual –
our holiday let affordability is based on an average
of low, medium and high seasons over 30 weeks,
divided by 12 to provide an average monthly figure
for our ICR calculations.
C AS E FOU R
HARPENDEN BS
This is certainly a scenario that we can accept. We
take an average of the low, mid and high weekly
rentals across 30 weeks for affordability.
If the property is owned in the applicant’s
personal name, we could also use their personal
income to boost affordability.
We can accept personal usage up to 90 days a
year. We can also accept that the applicants do not
have holiday let letting experience, particularly
as they plan to let the property through a
management company.
BUCKINGHAMSHIRE BS
Buckinghamshire Building Society can consider
this scenario, subject to the applicant meeting the
required minimum income criteria.
The property must be managed by an
established holiday let agent.
Affordability will be assessed based on high,
medium, and low season rental projections, with
details of occupancy rates and any associated fees
required to support the lending decision.
The property’s location is acceptable, being
within a recognised holiday let destination.
First-time buyer and exlocal authority flat
first-time buyer hopes to purchase an exlocal authority flat worth £225,000. They
have saved up a 10% deposit and earn
£39,000 annually. They have been employed in the
same administration role for over six years.
The flat is located within a larger block where
a high percentage of units are socially rented.
Service charges are relatively low, but planned
building works have recently been discussed by
the freeholder. The applicant has a clean credit
history and no outstanding debts.
A
UNITED TRUST BANK
UTB’s current max LTV is 85% therefore unless the
applicant has access to additional deposit totalling
at least 15% then we would not be able to consider
this application.
All other aspects of this scenario make it a case
we could consider, subject to adequate credit
score and income calculations.
WEST ONE LOANS
We assess all holiday lets as though they were
to be let as an Assured Periodic Tenancy. We
don’t prescribe a minimum income and will judge
affordability based on 140% DSCR – assuming
they are a higher rate taxpayer based on £51,000
income. If this was purchased in a limited
company, we could consider lending based on a
DSCR of 125%. In principle, if these check out, we
would be willing to offer a buy-to-let mortgage.
GEN H
SUFFOLK BS
The society would need to refer this case for
valuation guidance, given the high proportion of
socially rented units.
The LTI of 5.88 would be too high and therefore
the case would fail on affordability. Adding an
income booster to the application would make the
mortgage affordable.
However, it’s also likely that we would receive
an unfavourable valuation based on the low
percentage of owner-occupied units in the block.
BUCKINGHAMSHIRE BS
We offer up to 80% LTV on holiday lets, with a
minimum income of £25,000, so this case fits
84
The Intermediary | July 2026
