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Guest House Mortgages

Guest house and B&B finance


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.
 

Which type of mortgage is required for guest houses and B&Bs


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.
 

What factors do lenders consider for a guest house or B&B mortgages?


When looking at applicants for a B&B mortgage, lenders often consider the following:

  • How much experience do you have in the hospitality sector? The more you have, the favourable the lender may be.
  • Do you carry all the required licenses for the hospitality business? 
  • What is the total value of the property?
  • What are the total size and max occupancy of your property?
  • Do you have a robust business plan or clear profit projections?


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. 
 

How much deposit would I need for a guest house or B&B mortgage?


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.
 

How do I secure a guest house or B&B mortgage?


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.

The Lending Channel are members of the National Association of Commercial Finance Brokers (NACFB).
2/1 King James VI Business Centre, Friarton Road, Perth, PH2 8DY
Tel: 01738 583008 | Fax: 01738 500402

The Lending Channel are authorised and regulated by the Financial Conduct Authority.
Company number SC334818
Data Protection Act: Z2030159

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT

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