The Lending Channel has experience in finding the ideal mortgage for every client, no matter your circumstances. This includes finding the best rates on specialists mortgages for guest houses, bed and breakfasts (B&B) and small hotels. If this applies to you, get in touch to discuss how we can help.
Anyone looking to purchase property for business or commercial activity should look at a specialised commercial mortgage rather than the traditional residential kind, as they differ in some important ways.
However, when it comes to mortgaging a guest house or B&B, the two types of mortgage can overlap.
This overlap can come from the fact that the property owners can sometimes still reside where they plan to conduct their business, so deciding which is needed, commercial or residential, can be confusing.
We are on hand to assist you in any way to help clear confusion and find your ideal finical solution
The answer is often as simple as how much of the property will be used as personal space; more than 40%, then a residential mortgage is best suited.
When looking at applicants for a B&B mortgage, lenders often consider the following:
If you're unsure about any of the points above, give us a call, and we'll help you understand precisely what is required for this type of mortgage.
If you're new to the hospitality sector, don't worry, this just means that some lenders may be wary, but it does not mean you are instantly rejected for gaining the financing you need.
Most lenders' typical deposit amount will be between 20-40%, which is dependant on the amount of risk the lenders may think they are taking.
Unlike many brokers, we have a team specialising in a range of complex mortgages and can help you determine, source and secure the type of mortgage that is right for you, your property and your current situation.
Running a guest house can be a desirable career, and the good news is, we can assist in any requirements you may have to forward your goal. Get in touch.