Looking to going in early June with my wife.
But as we are moving this year we don't want to spend the earth.

Anybody got any recommendations or know of useful websites?

Nobody?

Try helpful holidays, loads of cottages in the south west. It's who we always use. Here you go;
http://www.helpfulholidays.com/advresults.asp?proxy=y&r=0.3662073

We stayed here it was about 4 years ago, worked for us with 2 small kids, a bit out of the way but easy enough to get to Padstow or around.

Nice clean & quiet

We stayed in one of these a few years ago, can't remember which but they're all much the same I think:

http://www.helpfulholidays.com/place.asp?placeid=290

Tiny hamlet, not far from Padstow or Wadebridge, v easy to get onto coast cyclepath that runs between P/sto & w/bridge. One pub, good steak, not a lot else. Supermarket about 5 mins drive due west in outskirts of w/bridge.

Try looking on the Chycor website, there are lots of self-catering places advertised on there, and you can sometimes find holidays with money off from where they've had cancellations – http://www.chycor.co.uk.

Not in Padstow, but me & my husband stopped in a nice character cottage just outside Tintagel (at the top of Rocky Valley). http://www.trevillettmill.com. There are 2 small cottages which sleep 2 there, and its a really nice peaceful spot and the price isn't too bad for Cornwall!

Sounds interesting. Will get searching

We've stayed in the area very many times over the years. Without doubt the best place I've ever stayed (anywhere!) is Rooke Farm Cottages in Chapel Amble. It is at the higher end of the market but it is just simply gorgeous. Their cottages range from a small one for couples to a larger one which accomodates around 10, I think. They have barn owls nesting in their barn and have a CCTV linked to the TVs in the cottages so that you can see the owls nesting (children love it). The owners (Rob and Gill Reskilly) also have a waterside flat in Wadebridge, but not tried that. Unreservedly recommended, but not cheap (however, have paid more for worse). They tend to get booked up a long way in advance. They're probably fully booked for school hols in 2010 (possibly 2011 too!!) but you shouldn't have probs if you want to go outside school hols. PS I have no financial incentive to recommend them just one very happy punter!

PS Have also stayed in the Custom House on the harbourside in Padstow and that's great particularly if you have a room overlooking the harbour, but it's more of a hotel than a cottage.
However, avoid at all costs the flats above the giftshop opposite side of harbour to the Custom House. Truly awful. We were totally ripped off. Turned up to dirty flat, stained sheets and curtains etc, bare wires etc. Walked straight out but lost our money. Owner doesn't give a fig. Avoid at all costs.