Will I be able to get a BTL/holiday let mortgage?

startled_cat

After some initial thoughts please.
I am looking at buying with a friend a property to rent out as a holiday home.
The house is £82K. It needs some cosmetic work doing to it, but it should not take much, paint, new bathroom/kitchen etc. All of which we will be able to do ourselves.
We dont have the finances for a huge deposit, but we own outright a commercial property worth 40-50k, which has long term tenants in (5 year into a 10 year lease) with a rental income of £300 a month.
Would we be able to use that property as security instead of a cash deposit on the new property?
Many thanks for all input.

ACG

In short no.
Although you could use that property presumably to raise finance to put down as a deposit on the new property.

startled_cat

ACG wrote: »

In short no.
Although you could use that property presumably to raise finance to put down as a deposit on the new property.

Had considered that, but got burnt a few years ago when I got mucked about and lost a few hundred on the valuation which was a joke. Didnt really want to mortgage it to raise the deposit, only to not get the new property, but looks like that may be the only way. Thanks for answering.

ACG

I dont do commercial mortgages but I know some residential/btl lenders only charge the valuation fee once the underwriting is complete - there may be some commercial lenders who do something similar.

startled_cat

ACG wrote: »

I dont do commercial mortgages but I know some residential/btl lenders only charge the valuation fee once the underwriting is complete - there may be some commercial lenders who do something similar.

Cheers. Guess I best make a few calls tomorrow. Many thanks.

Thrugelmir

Holiday homes are a different proposition to BTL's from a lenders perspective. Without a solid income stream you may well struggle to obtain finance at a good rate. To be allowable for tax as a holiday let there are hurdles to be met as well.