Thinking about buying a B&B or Guest House in Scotland?

Why bed and breakfast purchases in Scotland are different.

There is a considerable difference when you come to purchase a B&B in Scotland, or a guest house. For instance, Scotland has its own judicial and legal system which differs from the rest of the UK which often results in confusion, expense and sometimes frustration when compared to English law and procedures.

One of the most notable is the commercial land tax know in England as SDLT (Stamp Duty Land Tax) whereas in Scotland this is known as LBTT (Land and Buildings Transfer Tax) which is charged at a higher rate to comparable SDLT. Another higher cost are legal fees which are generally 50% higher than comparable English legal fees for commercial conveyancing.

And it doesn’t stop there. Energy Performance Certificates have different ratings in Scotland to those in England and can often lead to confusion as lenders will only lend on commercial properties that are EPC compliant.

And finally, Scottish lenders and other UK lenders who operate in Scotland also have different lending criteria which can be more onerous than UK lenders so nothing is a given.

We at Stewart Hindley, operate throughout the UK, and have considerable experience assisting prospective purchasers who are buying properties in Scotland with their commercial mortgage requirement.

If you are considering buying a property your first port of call should be Stewart Hindley as we’ve funded many a Scottish B&B and Guest House not only for UK wide purchases but for Scottish Purchasers too.


For more information please get in touch

How to start a bed and breakfast in the UK

Are you looking to open a bed and breakfast (B&B) in the UK? Wondering where to start when it comes to securing the finance you need to purchase a bed and breakfast? If the answer is yes, you’re in the right place.

Many people dream of owning their very own bed and breakfast in the UK, but they don’t know where to start. The process can seem daunting, particularly if it’s the first time you’ve bought a B&B or hotel.

We’ve created a helpful guide outlining everything you need to know about starting a bed and breakfast in the UK.


Is owning a bed and breakfast right for you?


The first thing to consider is if running a bed and breakfast is right for you. Why are you thinking about buying a bed and breakfast? What are you hoping to achieve? And do you have the skills and qualities you need to run one?


Starting a bed and breakfast is a massive commitment and can be life changing.  So, think about what your expectations are and consider all the pros and cons of running a bed and breakfast. You should also think about whether it’s truly the lifestyle you want – it might seem idyllic, but running a bed and breakfast can be a lot of hard work, including early mornings, late nights and very few days off.

Consider the following points:


  • Are you familiar with the location of the bed and breakfast?
  • Have you got a strong support base around you?
  • Are you a multi-tasker?
  • Are you good at coping
  • Do you like the idea of being self-employed?
  • How do you cope with routine?
  • Do you cope well under pressure?
  • Do you love people and enjoy being around them on a daily basis?


Choose your bed and breakfast property carefully


If you’re certain that owning a bed and breakfast is right for you, it’s time to start looking for the right property.


Think about the location, how many bedrooms you want, and if you want a property that’s ready to go, or one you can work on as a project before you launch your business.



What type of mortgage do you need to purchase a bed a breakfast?


The next step in setting up a bed and breakfast is to secure a mortgage. You’ll need a commercial mortgage for this type of purchase.


Many commercial mortgage lenders are happy to lend on bed and breakfast properties and these are available as fixed and variable-rate loans that usually have a repayment span of one to 25 years. Remember that deposits for commercial properties tend to be around 35% or 40%.


Budgeting and planning

You’ll need to plan your budget to ensure that the bed and breakfast business is actually viable. Remember to allow for seasonal peaks and dips, and ensure you can cover all your costs.



Consider how you will market your business. Who is your target audience? And how can you reach them?

From social media platforms and websites, through to traditional methods such as flyers, advertising and more, there are plenty of ways to promote your new bed and breakfast business. You may also decide to advertise via an online booking site.


If you’re considering buying a commercial property such as a bed and breakfast in the UK, 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.




How to buy a hotel

For many people, owning their own hotel is a life-long dream. A dream that can bring much fulfilment, new opportunities, and happiness.

However, when it comes to tapping into the hotel sector, there are a range of factors you need to consider and addresses before buying a hotel, and during the purchasing process.

Here’s our guide to buying a hotel.


What type of mortgage do you need to buy a hotel?


If you’re considering buying a hotel, renovating a hotel, or expanding any commercial property, you will need to apply for a commercial mortgage.

Many lenders offer a variety of commercial mortgage deals, with the majority available as fixed and variable-rate loans. You should always shop around to find the best deal and keep in mind that most commercial mortgages have a repayment span from one to 25 years.


What deposit do you need to purchase a hotel?


Deposits for commercial properties such as hotels are generally 30 or 40 percent of the total value of the property – a lot higher than residential properties.

The amount you can borrow will depend on a number of different factors, including:


  • The price of the hotel
  • The type of hotel
  • How much deposit you have
  • Current market conditions
  • Your credit score and financial situation


Whether you are eligible to purchase a hotel, will depend on the above factors and whether or not you meet the criteria set out by the lender you choose. Ultimately, it comes down to how much of a risk you are financially and whether you are in a sound financial position to be able to pay back the money you have borrowed.


Applying for a mortgage for a hotel – what do I need?


When applying for a mortgage for a hotel, you will be required to complete the relevant paperwork and also supply a sound business plan. During the process, you will be asked questions relating to your business and financial situation so that lenders can understand how you intend to pay back your loan. An affordability check will then be completed and you will receive an agreement in principle.



Why choose Stewart Hindley?


If you’re considering buying a hotel, 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 hotel finance or commercial mortgages.

Staycations to dominate the UK hospitality sector

UK hotels to benefit from staycation surge

A staycation surge is expected in 2021 across the UK due to ongoing international travel restrictions and successful domestic vaccine rollouts. This presents a promising opportunity for UK hoteliers to attract people who would previously have chosen to travel abroad for holidays and weekend breaks.

Domestic travel received 70% of hotel clicks on TripAdvisor in January 2021, where the summer months proved to be the most popular for bookings.  VisitBritain predicts a recovery of £61.7 billion in domestic tourism spend in 2021, up by a staggering 79% compared to 2020.

VisitBritain’s October 2020 survey also suggested a 33% increase in domestic interest in short stay UK breaks, compared to 2020.

Glamping, holiday lets, caravan and camping searches at a high

Many travellers are turning to both weekly and weekend holidays across the UK’s wide range of leisure parks, from touring caravan sites to seaside static caravan parks, and from countryside lodges to mountain “glamping”. A turning point for many was when self-contained and self-catered accommodation was allowed to re-open to family bubbles from 12 April 2021 a full month earlier than traditional hotels.

Looking at Google search trends, the topics ‘glamping’, ‘holiday lets’, ‘caravan’ and ‘camping’ have all seen a record number of searches during the pandemic and are expected to increase even further in 2021, especially during the warmer months.

How easy is it to get the hospitality finance you need?

The last year has been very challenging due to the pandemic resulting in reduced appetite and lower LTV’s, however at Stewart Hindley, we have successfully completed numerous cases where prospective purchasers have either had their loan applications declined via other non-specialist Finance Brokers, or they assumed because they had a good relationship with their bank, they would get their loan application approved, unfortunately more often than not this is not the case.

Why use a specialist hospitality finance broker?

By engaging with a specialist hospitality finance broker, such as Stewart Hindley & Partners, you can be assured that if there is a deal to be done, we at Stewart Hindley will get it done in the shortest time possible on the best rates and terms given the for the prospective purchaser with an assured and timely outcome.

But don’t just take our word for it – visit our website to view some of our many clients’ finance testimonials.

To have an initial discussion with us, please get in touch on 01488 684834.  We look forward to hearing from you!

Hotel Finance Guide

When it comes to securing hotel finance and fulfilling your dreams of running a successful and profitable hotel, there are a number of different finance options available.

Running a hotel opens up a host of exciting opportunities, allowing you to provide a unique, enjoyable and comfortable stay for your guests. Running a hotel can also be profitable, providing you invest in the right things.

But, to bring the vision of your hotel to life, you’ll first need to secure the necessary finance.


What is hotel finance?

Hotel finance refers to the funds you’ll need to invest in your hotel and get your business off the ground. This type of finance is designed to support the plans you have for your hotel and provides you with the cash you need to make your business a success.

As with any type of finance, there are a number of different hotel finance options available, including commercial mortgages and business loans for hotels.

However, in order to obtain funding for your business venture, you will need to present a robust and credible business plan to your lender, along with a sound financial model, a targeted marketing plan, and feasibility reports. This will help your lender to feel confidence in your ability to be able to pay the loan back.


What options are there for financing my hotel?


Commercial mortgages for hotels

Just like residential mortgages, commercial mortgages for hotels allow you to borrow the money you need to buy your hotel business and pay it back over an agreed term.

Many lenders are happy to provide commercial mortgages for hotels so it is important to shop around to find the right deal for you. This is where a commercial mortgage broker can be incredibly helpful.

Keep in mind that deposits for commercial properties are a lot higher than residential properties, with lenders usually asking for between 30 or 40 percent of the total value of the hotel.


Business loans for hotels

Business loans are another option for financing a hotel, whether you’re expanding, renovating, or just starting out.

Providing an invaluable source of income when you need it the most, business loans for hotels are available from a range of different lenders. Again, the loan that is right for you will depend on your individual financial circumstances.

Any kind of hotel business can apply for a business loan, but the rates and terms will vary depending on your circumstances. You should be aware that you will be expected to present your business plan, projections, financial forecast and more when applying for a business loan for your hotel.


Why choose Stewart Hindley for your hotel finance?

If you’re considering buying a commercial property, such as a hotel, it’s important to talk 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 for hotels.

Turned down by the bank for a commercial loan – what next?

Who do you turn to when your bank says no?

If you are reading this blog right now, then it is very likely that you’ve been declined by the lender you have approached, or your search for a suitable commercial mortgage wasn’t successful.

Finding a commercial mortgage to realise your dream of buying your own Guest House or Bed and Breakfast can be a complex and time-consuming process and your chances of being successful with your own loan application are marginal to say the least, especially when hotels, guest houses and bed & breakfasts have all but been closed for the last 12 months.

So, the question is, how can how confident can I be that once I’ve made an offer to purchase a Guest House or Bed & Breakfast, that I can secure a commercial mortgage on the most competitive terms in the short time possible, and convincing the sales agent and ultimately the vendor that I’m a credible purchaser.

The first step would be to engage with a firm of specialist brokers such as Stewart Hindley & Partners who specialise in guest house and bed & breakfast finance who’ll provide you with a lenders in-principle decision within 48 hours.

Assuming a positive result, this will then give you the confidence to make an offer via the sales agent that should be made subject to valuation and finance which is the norm when purchasing a guest house or bed & breakfast.

Once your offer has been accepted, Stewart Hindley will then review the trading accounts and  present a full business plan and undertake all the lenders due diligence to facilitate a formal loan application  to ensure a satisfactory and timely outcome, whilst providing regular up-dates to the sales agent, who in-turn will be able to fully support your offer to the vendor, on the basis of Stewart Hindley’s track record of providing guest house and bed & breakfast finance solutions.

In summary, when searching for a commercial loan for a guest house or bed & breakfast don’t be tempted by headline rate and loan to values as these are often seen as attention grabbers when in reality it is never about borrowing the money it’s all about managing the lenders’ risk and trading expectations.

For further information on how we at Stewart Hindley can help you with your guest house and bed & breakfast financing go to our web site and review our case studies.

Remember, we can provide you with a lenders’ in-principle decision within 48 hours so you can proceed with confidence in a particularly challenging market.

How can debt restructuring help my hotel business?

One year into the coronavirus pandemic, the European hotel industry still faces a great level of uncertainty. With several government support packages and ways of restructuring, the industry is responding differently in each country to ensure businesses can continue to be viable in the aftermath of COVID-19.

In the UK, employee furlough schemes, business loans and suspensions on evictions have allowed the industry to continue trading and prevent the detrimental effects of lockdowns. However, there are still tough times ahead for the industry and Kate Nicholls, of trade body UKHospitality, says businesses need “enhanced grant support to keep venues alive and a solution to the ongoing rent debt problem that continues to linger over the sector.”

As owners and managers of hotels are left with plummeting occupancy rates, they now need to work out how to pay debt-related obligations and keep their hotel business afloat. Debt restructuring is a strategy that can help to find suitable funding and refinancing options to ease the pressures of trading difficulties, especially during these unprecedented times.

What is debt restructuring?

Debt restructuring is a process that allows businesses experiencing financial difficulties to refinance existing debt obligations. It makes debt more manageable and can provide much needed flexibility to businesses who need it in the short term.

How can debt restructuring help my hotel business?

If you are unable to meet your loan repayments to a commercial lender for your hotel business, you may feel under extreme pressure and your livelihood could well be at risk. A restructuring agreement can help to make your debt more manageable and ensure that once the pandemic passes, your hotel can still run effectively, and you and your employees will still have a job.

There are several ways this can be achieved but negotiating the terms of your debt payments with your lender can help you to secure positive outcomes and maintain your financial relationships.

Debt restructuring experts

Here at Stewart Hindley, we are experts in debt restructuring within the hospitality industry and will work to secure the best possible outcome for your hotel. We will help to guide you through the complete process and act on your behalf to reach a consensual agreement with your commercial lender.

Firstly, we will complete a full review of your business and negotiate with your commercial lender to agree on a recovery strategy for your hotel. We will also introduce new lenders who may be able to refinance your existing debt and achieve a repayment forbearance period whilst the restructuring takes place.


Contact Stewart Hindley today

If you’re a hotel owner or manager trying to navigate these challenging times and need experienced support and help with your business finances, please don’t hesitate to get in touch. We can look at your individual circumstances to help you secure the debt restructuring your hotel business needs.

How to get a mortgage for a bed and breakfast

Owning and running a bed and breakfast is something many of us dream of. What could be better than living in an idyllic location, running your own business and enjoying the chance to meet new people?

For those who are lucky enough to make this dream a reality, there are several practical steps to overcome – from finding the right property in the perfect location, through to securing a mortgage.

If you’re thinking of buying a B&B for the first time, here’s our guide to getting a mortgage for your dream business venture.

What type of mortgage do I need for a bed and breakfast?

When buying a B&B, you will definitely need a commercial mortgage. In some cases, if you’ll be living in the property and over 40% of the space will be used for your own residential purposes, then you’ll need a regulated commercial mortgage.

You’ll typically be expected to pay a deposit of between 30% – 40% for your commercial mortgage. The exact amount will depend on the terms of the mortgage and the level of risk involved. For first time B&B buyers, lenders will usually require a 40% deposit.

When considering your application for a commercial bed and breakfast mortgage, lenders will take into account the following:

Business plan

When you take out any commercial mortgage, the potential lender will want to see a thorough business plan, clearly demonstrating:

  • How you will run the business
  • Your long-term plans
  • Financial projections
  • Your marketing plan for ensuring high levels of occupancy

Trading history

Lenders will look at the bed and breakfast’s existing trading record and will likely want to see 3 years’ worth of accounts for the business you’re buying.

If the business you are buying does not have a strong trading record, there are still some lenders that will consider your mortgage application, if you can demonstrate that you have a comprehensive plan in place to improve profitability.

Credit history

As with any mortgage application, the lender will want to see that you have a strong credit history. There are lenders that offer bed and breakfast mortgages for those with a poor credit history. If this is the case, you will usually need to find a specialist provider, and you won’t necessarily be able to access the preferred rates.

Your experience

The lender will consider how much experience you have in the sector. Of course, experience isn’t essential, and lenders understand that many B&B buyers are moving into the industry for the first time, but any relevant industry experience will be looked upon favourably.

Speak to a specialist broker

If you’re buying a bed and breakfast, it’s well worth speaking to specialist broker with experience in securing mortgages for B&Bs. They will help you source the most competitive offers, undertake all of the work for you to include the financial business plan, revenue and cash flow projections as well as the marketing plan ,as well as handling all of the required paperwork, which will increase your chances of being approved.

To find out more about how to get a mortgage for a bed and breakfast, get in touch. Call us on 01488 684 834 or email:

What is asset financing?

Asset financing is a type of loan designed to enable the purchase of high-value items or resources on behalf of a business. These items or resources are known as assets.

Taking out asset finance makes it possible for a business to secure the assets it needs and pay for them gradually over time through fixed repayments, making asset financing good for cash flow and achieving business growth. Asset financing may also involve a business using an asset it already owns as security against a loan to boost working capital.

A business of any size can make use of asset financing, as long as it can meet the criteria required to secure the loan.

What counts as an asset?

In business terms, an asset is an item of value that provides business benefits. All businesses need assets to carry out operations or generate an income, and may secure assets by purchasing or leasing them.

Examples of business assets include buildings, vehicles, IT equipment, inventory and raw materials.

Types of asset finance

The two main types of asset financing are Hire Purchase and Leasing. Both involve borrowing funds from an asset finance provider to procure a business asset, but differ with relation to what happens to the asset after the loan term.

Once a Hire Purchase asset financing agreement is settled, the asset either automatically becomes the property of the business or they will have the option to pay a final payment and own it outright.

Conversely, at the end of most Leasing asset financing agreements, there is no option for the business to purchase the asset and keep it, although Stewart Hindley is proud to be different. We offer our leasing customers the chance to own their leased assets outright via a process called passing title, for a fee agreed at the start of the loan term.

Why asset financing?

There are many benefits to asset finance for businesses. Many opt for asset finance so that they can spread the cost of large outlays, stay in control of cash flow and put working capital back into the enterprise itself, rather than investing in assets upfront. There’s also no need to provide extra loan security, since the asset itself acts as security.

Asset financing loans can run up to a maximum term of seven years and the repayments are fixed, so a business can budget exactly with no danger of hidden costs. Interest rates for asset finance tend to be lower than those associated with other forms of lending too.

If you’re ready to find out more about asset finance for your business, get in touch with us today.

What is hotel financing?

Hotel financing is a type of commercial mortgage designed to fund a new hotel, guest house or B&B project or to reinvigorate or refinance an existing one. This type of finance is specifically intended to meet the particular needs of hoteliers and hospitality businesses.

While it is possible to obtain a commercial mortgage for hotel financing from a traditional bank, hotel finance is best sourced with the help of an experienced hotel finance broker with access to exclusive rates from the whole market.

The hotel and wider hospitality industry is fiercely competitive yet highly rewarding for those with the qualities lenders are seeking, so it pays to prepare an application for hotel financing with expert guidance.

How does hotel financing work?

Hotel lenders will only consider the most robust hospitality business opportunities, and there are strict criteria that govern the hotel financing application process.

Anyone seeking hotel finance, whether they are new to the industry or a seasoned hotel operator, will need to submit detailed forms regarding their hotel business and business plan, their experience in the sector, as well as their plans for the loan and how it will be repaid. While experience in the hotel trade is a definite plus when seeking hotel finance, it is entirely possible to secure a commercial mortgage for a hotel business as a new to trade hotel buyer.

In most cases, lenders will look for a deposit of 30% or more, additional security, a solid business plan, a good personal credit rating and three years of trading accounts from the loan applicant and the hotel vendor.

When a hotel financing application is made via a specialist broker like Stewart Hindley, these criteria are put to specialist lenders from across the whole market with whom the broker has established years of positive rapport. It’s the job of a hotel finance broker to not only help the applicant create the most attractive business opportunity, but to seek out the most suitable lenders on their behalf.

Securing hotel finance

At Stewart Hindley, we have refined an expert approach to assisting both experienced hoteliers and those new to the trade in securing hotel financing. Our specialist team can guide you through the complexities of building a strong hotel finance application, before identifying the best potential investors and obtaining the best market rates.

Get in touch today to find out how we can help you acquire the hotel finance you need to turn your hospitality vision into reality.