B&B / Guest House

couple booking into a guest house.
If you are looking to purchase or refinance a Bed and Breakfast or Guest House we can access specially designed mortgages from lenders that understand the hospitality sector and underwrite their loans on a bespoke basis.

Typical Characteristics

  • Up to 60% loan to value, although 50% is becoming quite common
  • Minimum £250k property value.
  • Minimum £75k loan
  • Maximum 25 year repayment profile
  • Interest only is possible up to 50% LTV and for a maximum of 10 years
  • Leasehold properties should have a maximum 85 years left on the lease at the start of the mortgage and 50 years at maturity.
  • Borrowers to be EU Nationals resident in the UK
  • Properties to be freehold or long leasehold and of standard construction
  • Our lenders can lend to individuals, partnerships and limited companies
  • Some lenders have minimum income and home ownership criteria but not all.

The lenders we work with offer bespoke underwriting and some do not require credit scores.

Professionals Sat Down

Complimentary Funding

Every business needs more than one form of banking or funding. If you need funding for renovation or redevelopment of a property we can help. If you need funding for business assets – maybe a van or kitchen fit out we can help. We can also help with the basics such as bank accounts etc.

Some people who are considering buying a B&B or Guest House want to raise their purchase deposit through a remortgage of their domestic house – we can help source mortgages through our partners.

Costs and Considerations

As with any property deal, the lender will need to value the property which may be a non-refundable charge, but this is normally only at the stage where the lender has agreed the funding “in-principle” subject to valuation.

Typically, loans have arrangement fees of 1%, and there are normally legal fees to complete the mortgage, and you will require a solicitor.

Interest rates for this type of loan are currently in the region of 3.55%.

If you would like to talk to someone about your funding needs then why not get in touch with us by clicking here.

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