Crash rich, credit poor. Business or mortgage loan?

emilyscott1990

Hi there, first time in this forum! 

I am looking to buy a property in Cornwall as a first time buyer with my grandmother. 

I have 250,000 from a sale of a business and my grandmother will have 250,000 from the sale of her house. The property we are looking to buy is a 650,000 small holding witch we will turn into a holiday rental business witch will pay the mortgage. 

I am currently working in a restaurant with low income and have no credit history so it is showing up as poor. 

What do you think my chances are of a mortgage? Will I be laughed out of the bank or will the hefty deposit be enough to sway them? Or would a Bussiness loan be a better way to go? Any advice is welcome. 

Thanks! 

MWT

Sounds like you are going to need an agricultural mortgage.

This is a very specialised area and you are going to need a solid business plan especially if there is not a viable business attached to the property already as you will have costs in advance of your holiday rental business getting off the ground.

Do either of you have prior experience in this area or at least of running a business of some kind?

emilyscott1990

Hi there, 

I have run a van van hire company with my grandfather for 7 years before he passed away and my grandmother has previously run a BNB for many years though not for a while as she took time out to care for her parents. So we have business experience however I joined an existing business never started one and it is a while ago for both of us. There isn’t so much land as outbuildings witch we will convert to self contained holiday let’s.  Land only totals 1 acre. 

Thabks 

MWT

If you don't already have a business plan put together showing how you get from purchase to revenue and profit then that is the place you will need to start...