How To Get Approved For a Commercial Mortgage

Commercial investment mortgages are designed to enable an individual or a company to purchase a business property as an asset. This type of mortgage is used for a wide range of commercial properties including retail complexes, hotels, restaurants, offices, warehouses, leisure facilities, land for development and public houses.

A commercial mortgage is approved to an individual or company looking to buy a business property, either to rent or to use as their own business premises. Lasting from five  to 25 years, you can usually find a 65-70% mortgage, which is a measure of loan-to-value ratio used to establish how much you will be borrowing in relation to how much the commercial property is actually worth.

If you’re purchasing a commercial building as an investment, the amount of rental income the property will generate is compared to the overall investment amount. As a general rule of thumb, this must not exceed 65% of the purchase price.

Everything you need to know about a commercial mortgage

There are a number of key features that you should be aware of before taking out a commercial mortgage, including the fact that there are no fixed fees. However, you will usually pay a higher interest rate on commercial properties than you would on residential property .

The good news is that commercial mortgages secured by a FCA approved broker typically offer better interest rates than mortgages arranged by individuals  and the interest you do pay on your commercial mortgage is tax-deductible.

Deposits for a commercial mortgage

As with any mortgage, different lenders will have different requirements when it comes to a deposit for a commercial mortgage, so this is something that you should be aware of before applying.

Most commercial mortgages require a deposit of between 30% and 40% depending on the level of risk they deem your project to carry and the type of commercial mortgage you’ve applied for.

What do you need to apply for a commercial mortgage?

Before completing your commercial mortgage application, it’s important to gather the following information so the process can run as seamlessly as possible:

  • Key business information
  • Your personal and or business Bank statements, usually covering the last three to six months
  • Trading figures, usually covering the last three years
  • Proof of identity and address
  • Lease and/or rental tenancy agreements
  • A business plan for financial projections – this will help the lender determine how likely it is that you’ll be able to pay off the loan

If you’re considering buying a commercial property, it’s important to speak to someone experienced in the sector to ensure that you are aware of all the funding options available to you.


Get in touch to speak to one of our skilled and experienced team. We are always on hand to answer any of your queries regarding commercial mortgages.

Bed & Breakfast Finance Going Forward

2020 is definitely going to be a year to remember. Life went from normal to “lockdown” overnight and hospitality businesses were closed down by the government. So does this mean that you won’t be able to buy a bed and breakfast or guest house in the future?

Of course not, what it does mean is that lenders will see the sector as a higher risk post Covid 19 and as a result loan to value ratios may change. Up until now the maximum loan a new to trade operator would have been able to secure on a bed and breakfast or guest house was 65% of the purchase price meaning you needed at least a 35% deposit plus funds to cover fees such as stamp duty, valuation etc. to be able to buy your dream property.

Going forward we are still to see how lending criteria will change but, having said that, Stewart Hindley & Partners have mainstream and specialist lenders who are still willing to lend on hospitality properties. We don’t know what society will look like after the Covid-19 pandemic has gone but one thing we do know is that many people will be looking to take more short breaks and staycations in the UK rather than travelling abroad.

Post Covid-19 could mean a boom period for bed and breakfast owners which would help them to recover from the sudden loss of their incomes and hopefully inject some confidence back into the sector.

If you are thinking about buying a bed and breakfast or guest house and need the best finance deal available to meet your circumstances speak to us here at Stewart Hindley & Partners as we are specialists in the hospitality sector and if we can’t help no one can!

Contact us today and you could have your own bed and breakfast.

CBILS Funding

CBILS Funding

Lenders are currently overwhelmed with applications and it may well take several weeks before the relevant lending manager gets to look at your case and then assess your application. At Stewart Hindley & Partners we have direct access to your local r lending or relationship managers. By using an FCA approved broker such as ourselves you can dramatically reduce the amount of time your application will take, get the best interest rate available given your circumstances and clarification of your situation in the immediate future.

Not every accredited lender can provide every type of finance available under CBILS, and the amount of finance offered varies between lenders. As “whole of market brokers” we have access to a wide range of lenders and will be able to find you a loan solution even if the prime lenders have declined to help.

Stewart Hindley & Partners will do all the work for you all you need to provide is the relevant supporting information.

The British Business Bank has a lot of information available to small businesses to help them access funds during this unprecedented time a summary of which is below.

The lender makes a decision

The lender, not the British Business Bank has the authority to decide whether to offer you finance.

Under the scheme, lenders will not take personal guarantees of any form for facilities below £250,000.

For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion, but:

  • they exclude the Principal Private Residence (PPR), and
  • recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied

 If the lender turns you down

If one lender turns you down, you can still approach other lenders within the scheme but this will be considered as “new to bank” and differing qualifying criteria may apply.

Access to the scheme has now been opened up to smaller businesses facing cashflow difficulties who previously would not have been eligible for CBILS because they met the requirements for a standard commercial facility.

You may therefore consider re-contacting your lender if you have previously been unsuccessful in securing funding.

Who is eligible

Your business must:

  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19).

View the British Bank Quick Eligibility Checklist

Businesses from any sector can apply, except the following:

  • Banks, insurers and reinsurers (but not insurance brokers)
  • Public-sector bodies
  • Further-education establishments, if they are grant-funded
  • State-funded primary and secondary schools

View CBILS frequently asked questions for businesses

 What lenders will need from you

When you apply for a business loan, most lenders will ask you for the following:

Details of the loan

  • The amount you would like to borrow
  • What the money is for — the lender will check that it’s a suitable business purpose and the right type of finance for your needs
  • The period over which you will make the repayments — the lender will assess whether the loan is affordable for you

Supporting documents

You will need to provide certain evidence to show that you can afford to repay the loan. This is likely to include:

  • Management accounts
  • Cash flow forecast
  • Business plan
  • Historic accounts
  • Details of assets

The above requirements will vary from lender to lender. If you do not have everything listed here, a CBILS loan could still be an option to provide finance to support your business.

Note: For many customers approaching their existing lenders for a smaller facility, the process may be automated and therefore may not require the same level of documentation.

To learn more about lenders’ requirements, see the Better Business Finance lending application checklist.

Here’s the link –

Business Support Finance – COVID-19

Launched in response to the coronavirus outbreak, the Coronavirus Business Interruption Loan Scheme (CBILS) is designed to support UK businesses during this period of disruption. CBILS provides the lender with a Government backed guarantee of 80%, against finance offered under CBILS with the balance of risk being held by the lender.

CBILS is designed to assist with cash flow, initially by way of a Capital Repayment Holiday (Interest only period) of 12 months or a commercial loan over 6 years, with no repayments in the first 12 months followed by a 5-year loan facility on a full repayment basis.

CBILS will only be made available to businesses that were deemed “viable pre Covid 19” and as a consequence a “robust” case must be made for your new Capital Repayment Holiday or loan based on your pre Covid trading information.

It is important to note that if your financial and supporting information isn’t presented correctly to meet the lenders requirements, this could lead to a decline for support, which may impact on your existing loan covenants when considered against your lenders’ “prevailing” debt service criteria which may give your lender cause for concern post Covid 19.

During this period of uncertainty, we at Stewart Hindley & Partners are here to help you and have direct access to all the lenders’ that offer CBILS and who are accredited by the British Business Bank. If for any reason your business is not eligible for CBILS then we can provide other routes to finance to support your business.

Given the record levels of demand that banks are incurring for general advice and CBILS applications, we at Stewart Hindley & Partners are able to offer, on your behalf, support through our own FCA relationships with all CBILS accredited lenders.

As a result, we are able to deal with the relevant Business Relationship Manager directly, to ensure a prompt application, with the best possible outcome given your circumstances and thereby take away the uncertainty by securing a decision in-principle within 24 hours.

If you’d like to discuss how we can assist you with your CBILS application or any other funding requirement during these challenging times, then please don’t hesitate to get in touch with us either via completing the contact form or by calling us directly on 01488 684834.

How are GP Practices funded?

All of us use NHS services in some shape or form, including visiting our local GP when we feel unwell. But have you ever wondered how GP practices are funded or how a GP surgery works?

Many patients fail to understand that GP surgeries are run like a business and rely heavily on funding to provide a high standard of care to a set number of patients. This is one of the reasons why cancelling GP appointments or not turning up to a GP appointment can have a huge impact on GP’s budget and the services they are able to offer.

How are GP practices funded in England?

Throughout England, GP surgeries receive on average, £152. 04 per person, with England’s 7,543 general practices sharing £9,050,006 million. And this is to deliver care for approximately 59,527,981. These figures are based on data released in the 2017/2018 financial year.

The NHS offers three different types of contracts for GP practices, which impact the services they are able to offer. These may include General Medical Services, Personal Medical Services and Alternative Provider Medical Services.

The amount allocated to each GP practice depends on the type of contract provided.

How are GP practices funded in Scotland?

The way GP practices are funded in Scotland is different to England, following a vote for a new GP contract in Scotland that has changed the way Scottish GP practices are funded.

Set out in two phases, the changes outlined have also had an impact on GP pay structures. Phase one took place in April 2018 when the GP Workload Formula was introduced. The new formula has been designed to re-estimate the number of consultations per patient based on age, sex and deprivation. It has relieved the pressure on the workload of GPs in Scotland as it provides a more accurate reflection of patient inflow and demand.

Phase two is set to be introduced in 2020/2021 and although it is still subject to further negotiations between the Scottish government and GPC Scotland, the plans will aim to introduce a standard income range for GPs with a set pay progression. The main purpose of this change will be to remove the link between the new formula and practice funding.

All GP practices will still be required to submit annual data on earnings, expenses and hours worked to NHS National Services Scotland Practitioner Services.

Why do GP practices need GP surgery finance?

There are many reasons why medical professionals might require GP practice finance, including:

  • If a partner is leaving and the remaining partners need to buy them out
  • If the partnership is increasing and a loan is required to be split between the existing partners in order to dilute their shares
  • If practice improvements or extensions are required
  • If a new practice is being set up

At Stewart Hindley, we understand that the right investment is crucial when it comes to providing primary healthcare. Whether you’re looking for funding for an NHS GP practice or a private surgery, we’ve got the skills and specialist experience to help you secure commercial finance for your GP surgery. To find out more, get in touch.

Coronavirus – Business Help Available

As the coronavirus (COVID 19) continues to spread across the UK mortgage lenders have been taking special measures to ensure that borrowers are protected from financial shocks.

Most, if not all, lenders have put in place emergency funding to help existing SME businesses get through this period of uncertainty.

If you feel that your business may come under duress over the coming months, please speak to us now so we can assist you to put in place interest only periods or repayment holidays.

When Do You Need an Alcohol Licence?

In the UK, any business that plans to sell or supply alcohol must operate in accordance with the relevant licencing laws.

But what does this mean for your hospitality or accommodation business?

Can you sell alcohol without a licence?

The Licencing Act 2003 is the legislation used to licence premises in England and Wales on their sale of alcohol. This Act outlines the laws that any business selling alcohol must follow, including the licences they need to apply for and the processes they must put in place to ensure that the sale of alcohol is carried out responsibly.

Under the Licensing Act 2003, you must have both a Personal Licence and a Premises Licence to sell or supply alcohol on your premises.

What about providing free alcohol to my guests?

Many holiday lets, B&Bs and hotels provide guests with a welcome hamper filled with local delicacies, including a bottle of wine. This is a great way to impress your guests and make a good first impression.

However, if you provide free alcohol for your guests, you should be aware that you will still require an alcohol licence. This is because your guests have paid to stay in your accommodation, which means they are essentially paying for the ‘free’ alcohol.

The government is currently in the process of introducing Community and Ancillary Sales Notices (CANs) that will allow accommodation businesses to sell small amounts of alcohol for a nominal fee.

How do I apply for an alcohol licence?

To apply for an alcohol licence, you’ll need to complete an application form and send it to your local council, along with the fee. Some councils accept electronic applications – if this is the case, you’ll be able to apply online.

Once you have obtained a Premises Licence, you will need to become a Personal Licence holder. This will allow you to provide alcohol on behalf of your holiday home. You can apply for this licence through the Government website.

What is the cost of an alcohol licence?

There are two sets of fees involved in applying for an alcohol licence, both of which are based on rating bands. You’ll initially need to pay a fee to cover the cost of applying or varying a licence. In addition to this, you will have to pay an annual charge once the licence has been granted.

At Stewart Hindley, we can help you with all aspects of purchasing or re-mortgaging a hospitality business, including advice for licencing and legalities. For more information, please get in touch with our expert team.

How to Start a B&B or Guest House

Whether it’s always been a lifelong dream of yours to open a bed and breakfast (B&B) or you’ve identified a great business opportunity, running a B&B can be incredibly rewarding and lucrative.

At the same time, the purchasing process can seem overwhelming. There are a number of factors to consider before opening your B&B doors to the public.

If you’re hoping to open a bed and breakfast and you don’t know where to start, you’ve landed in the right place. Here’s our guide to opening your very own B&B.

Is it right for you?

First and foremost, you must consider whether or not owning a bed and breakfast is right for you. This is something that takes a lot of hard work and commitment, so starting a B&B should not be a decision that you take lightly – your new business will require your time and attention day in, day out.

Consider the costs involved

Once you’ve committed to the idea of opening your B&B, it’s time to consider the costs involved. Whether you’re buying a B&B, transforming your own home into a B&B or purchasing an existing bed and breakfast business, the same running costs will apply.

From merchant services costs, food, personal expenses and linen costs, through to furnishings, business supplies, smoke detectors and fire alarms, there’s an awful lot to consider. Make sure you’re aware of all the costs involved and have calculated how much you will need to charge to cover these expenses and make a profit – is it achievable?

Familiarise yourself with the rules and regulations

Before opening a bed and breakfast, you’ll need to familiarise yourself with the rules and regulations associated with running a B&B business.

And, although you don’t need a qualification or licence to open a B&B, you will need to take into account fire regulations, consult with your local authority planning office before putting any concrete plans in place, gain planning permission for any alterations, obtain necessary alcohol and TV licences and make sure you register with the HMRC for tax purposes.

Know your market

Before you consider opening a B&B, it’s important that you understand the needs and expectations of your target market.

Depending on the location of your bed and breakfast, you’ll either be catering for business or leisure guests, or a combination of the two, and it’s important that there is a demand for your services in the area.

With this in mind, don’t fall into the trap of falling in love with a property, only for it to fail in the first few months due to there not being any customer demand.

How much money do you need to start a B&B or Guest House?

The amount of money you’ll need to start your new business venture will depend on a number of factors, including how much work needs done to the property, whether you already have an existing client base or not, and the level of service you are intending to offer.

All of these should be analysed in your business plan and marketing strategy before you even consider purchasing or converting a property.

Tourism is big business throughout the UK. But, if you’re thinking about starting a bed and breakfast, it’s crucial that you do your research to determine whether it’s the right decision for you.

If you’ve done your research and you’re ready to set up your own B&B, get in touch today to find out how we can help with your mortgage for a bed and breakfast business.

What to Look for When Purchasing a B&B or Guest House

Many people dream of owning their very own bed and breakfast (B&B). Running a successful B&B business can be exciting, rewarding and profitable, but there are a number of other factors you should consider before taking the plunge.

With the average B&B business in the UK generating £70,000 a year, the B&B industry is thriving, making it a great business opportunity for those looking to earn a living doing something they love. But what should you consider when purchasing a B&B?

Do your research

First and foremost, before purchasing any property or business, you should always carry out extensive research into the property and the area surrounding your chosen B&B business.

Some of the questions you should be asking include when was the B&B established, its yearly turnover (if this is not disclosed, ask why!) and whether the business is currently active or not.

What’s included in the sale?

Before you sign on the dotted line, make sure that you find out what’s included in the sale price. For example, fixtures & fittings are usually included in the purchase price check that this is the case, how many employees does the business have, and is there any living accommodation?

The last thing you want is to be out of pocket before you even get the keys to your B&B.

Why is it being sold?

A lot of people are afraid to ask the question “why are you selling up?”

But this is one of the most important questions you should ask when looking to buy a B&B. After all, you don’t want to be investing in a B&B business that’s struggling.

Of course, many B&B owners sell for perfectly plausible reasons, such as for family or due to a change in circumstances. But it’s important to ask.

Where do you stand legally?

You should understand all of your legal obligations before investing in a B&B, including any food hygiene legislation you will need to adhere to, health and safety regulations, and any fire precautions that will need to be in place.

You should also be aware of your insurance and liability obligations, terms and conditions when it comes to bookings, property damage and cancellations, as well as small claims.

You may wish to attend a Bed & Breakfast course which will cover all aspects of owning and operating a bed and breakfast business.

How much deposit do I need to buy a bed and breakfast?

A deposit is required for commercial properties. With this in mind, if you’re looking at a minimum deposit for mortgage, you can expect to put down around 30– 40 percent of the asking price – this is standard for all commercial properties.

If you’re considering purchasing a B&B, we can help. Our expert team is perfectly placed to help you obtain the best financial solutions on the market, so get in touch today.

How Much Deposit Do I Need to Buy a Bed and Breakfast?

Opening a bed and breakfast (B&B) can be a great way to generate income while stepping back from the typical 9 to 5. It’s hard but rewarding work, and enables you to create a business that reflects your personality and passion as a hospitality business operator.

However, unless you live in a large property with a significant number of spare rooms, you will need to invest in a new property in order to set up a B&B business.

In most cases, that will mean taking out a mortgage. But what sort of mortgage will you need? And how much deposit will you be expected to pay when you buy your bed and breakfast?

As with any mortgage, different lenders will have different requirements when it comes to deposits for a B&B. The type of mortgage you will need will depend on a number of factors, including how much of the total space in the property will be used for commercial purposes.

Deposit for a commercial mortgage

In most cases, if you are using less than 40% of the property for personal use, you will require a commercial mortgage, or a semi-commercial mortgage.

Most commercial mortgages require a deposit of between 30% and 40%, depending on the level of risk they deem your business to come with and the type of commercial mortgage you have applied for.

Buying a B&B without a deposit

Whichever way you buy your B&B you will need a deposit.

If you don’t have a cash deposit for your bed and breakfast, you may be able to release equity from your existing property or another property to release the necessary funds for the purchase of the new B&B and Stewart Hindley can help with this.

If you’re considering buying a bed and breakfast, it’s important to speak to someone experienced in the hospitality finance sector to ensure that you are aware of all the funding options available to you. Get in touch to speak to one of our skilled and experienced team.