Mortgage for property with holiday let

Terrapinarium

Hi,

My in-laws want to take out a small mortgage on their property and use the money to help me and my wife get onto the property ladder. They own their house outright, and the mortgage would be for about 10% of its value. However, in a separate building to the main house is a garage with a small flat above it. They have been slowly doing this flat up and intend to let it as a holiday home in the near future.

Because of this intention, it seems the usual mortgage providers will not lend - they initially tried Natwest, and when that was not successful they approached London and Country brokers, who informed them that no one on their books would accept the application.

Does anyone know a way round this? I would have thought it is not that uncommon to want a mortgage when part of the property is being used in this way. I did look at semi-commercial mortgages, but what I have read online seems to suggest that you do not need one if the commercial part of the property is in a different building to the residential part.

Any help anyone can give would be greatly appreciated. It is frustrating that we seem to have hit this barrier when trying to borrow such a small percentage of the value of the property!

Thanks

Marine_life

The UK's main mortgage lenders are sausage machines so anything out of the ordinary is difficult.

Try a specalist lender like these guys:

http://www.cumberland.co.uk/mortgages

Terrapinarium

Thanks, I will definitely check them out