How Do Commercial Remortgages Work?

In the dynamic world of business, financial strategies play a pivotal role in ensuring growth, sustainability, and success. One such strategy that businesses often consider is commercial remortgaging, also known as refinancing. This involves replacing an existing mortgage on a property or asset with a new one, usually with better terms or rates.

In this article, we will delve into the intricacies of commercial remortgages, exploring why businesses opt for refinancing, how it differs from regular remortgages, and the pros and cons of this financial manoeuvre.

Why do Businesses Apply for Refinance Loans?

One of the primary motivations for businesses to consider remortgaging is the opportunity to secure a lower interest rate on their loan. As market conditions fluctuate, interest rates can change, potentially offering more favourable terms, such as extending the repayment period or adjusting the loan structure, than when the original mortgage was obtained. In doing so, companies can reduce their monthly mortgage payments.

Also, as a business’s properties appreciate in value, they accumulate equity. Remortgaging allows businesses to access this equity in the form of additional capital.

The increased liquidity from lower monthly payments or equity can be channelled towards core business operations, expansion initiatives, or even emergency funds, strengthening the company’s overall financial position.

Refinancing can also be used as a means to pay off loans or debts that a business might have accumulated over time. Remortgaging presents an opportunity to consolidate multiple debts into a single loan, simplifying financial oversight and reducing administrative burdens. This consolidation can also lead to cost savings if the new interest rate is lower than the combined rates of the previous debts.

Businesses’ financial needs and market conditions can change over time. Remortgaging provides an opportunity to tailor the loan structure to better align with the company’s current situation. For instance, a business may choose to switch from a variable-rate mortgage to a fixed-rate mortgage for greater stability, or vice versa to take advantage of potential interest rate fluctuations.

How does a commercial remortgage differ from a regular remortgage?

Beyond the most noticeable distinction between commercial and regular remortgages, i.e. that the former is for business-related properties or assets, such as office spaces, warehouses, or retail outlets, while residential remortgages involve personal properties, there are a number of key differences between the two.

Commercial remortgages are subject to different regulations compared to residential ones. Business properties often have unique zoning, usage and legal considerations that make a commercial remortgage more complex than a residential one. Not only this but the underwriting process is generally more intricate for commercial remortgages – lenders assess not only the business’s creditworthiness but also the property’s income potential, market conditions, and business stability.

Other distinctions include shorter loan terms on commercial properties than residential ones and commercial mortgages may have balloon payments, where a significant amount is due at the end of the loan term.

What Are the Pros and Cons of Refinancing?

Pros of Commercial Refinancing

Lower interest rate

One of the most significant advantages of commercial remortgaging is the potential for securing a lower interest rate compared to your existing mortgage. A lower rate can translate into substantial savings over the life of the loan, and the lower monthly payments can provide businesses with the financial flexibility to invest in expansion, research and development, marketing efforts, or other operational needs., freeing up capital that can be directed toward other business initiatives.

Reducing the commercial mortgage term

Refinancing also provides an opportunity to shorten the loan term. While monthly payments may increase in the short term, the business can become debt-free sooner, saving on interest payments and potentially increasing its creditworthiness.

Switching between fixed and variable interest rates

Refinancing allows businesses to switch between fixed and variable interest rates based on their risk appetite and market conditions. Fixed rates provide stability, while variable rates may offer lower initial payments.

Access to equity

Over time, properties and assets may appreciate in value, leading to the accumulation of equity. Commercial remortgaging provides an avenue for businesses to access this built-up equity. This capital can be used to fund renovations, upgrades, expansions, or new investments, further enhancing the business’s potential for growth.

Cons of Commercial Refinancing

While commercial refinancing offers several advantages, it’s essential to consider the potential drawbacks:


While commercial remortgaging can lead to potential savings, there are certain fees involved when it comes to remortgaging, including processing fees, valuation fees and legal fees. In some cases, these costs may offset the potential savings from a lower interest rate or shorter repayment period.

Prepayment penalties

Before proceeding with a commercial remortgage, businesses need to review the terms of their existing loan. Some loans may include prepayment penalties or exit fees, which are charges incurred for paying off the loan early. Refinancing could trigger these penalties, negating some of the potential advantages of the new mortgage.

Extended loan term

While commercial remortgaging can result in lower monthly payments, opting for an extended loan term to achieve this might have its downsides. A longer loan term means paying off the loan over a more extended period, potentially leading to higher overall interest payments. Businesses should carefully assess whether the reduction in monthly payments justifies the increase in interest expenses over time.

Potential impact on credit rating

Applying for a new loan, even if it’s a remortgage, could impact a business’s credit rating. Lenders may perform credit checks during the application process, and multiple inquiries within a short period can temporarily lower the credit score. However, responsible financial management and a strong credit history can mitigate this concern.

Remortgages with Stewart Hindley

Here at Stewart Hindley, we specialise in assisting businesses with their commercial remortgage needs. With over 15 years of experience, we help businesses navigate the complexities of remortgaging, and we constantly track hospitality market remortgage rates, to help you secure favourable terms and achieve your business and financial goals. If you’re considering remortgaging your commercial property, get in touch with a member of our skilled and experienced team who are on hand to help you.

Understanding Commercial Mortgage Rates

Investing in commercial real estate can be a lucrative venture, but it often requires securing financing through a commercial mortgage. One of the most critical aspects of a commercial mortgage is the interest rate, which can significantly impact the overall cost of the loan and the financial feasibility of the project.

In this article, we will delve into the intricacies of commercial mortgage rates, exploring how they work, the difference between fixed and variable rates, the factors that influence rate calculations, and the considerations when deciding whether to fix your mortgage rate.

What is the average commercial mortgage interest rate?

The UK average interest rate for commercial mortgages is, as of August 2023, between 3.5% and 4.5%. However, they can be much higher for certain investments, such as high-risk ventures. We examine the factors that influence interest rates below.

How do commercial mortgages work?

Commercial mortgages are loans specifically designed for purchasing or refinancing commercial properties, such as office buildings, retail centres, industrial complexes, and multifamily properties. These mortgages function similarly to residential mortgages, but they cater to the unique needs of businesses and investors in the commercial real estate market.

Commercial mortgages typically come with longer loan terms and lower interest rates compared to other forms of financing. This provides borrowers with stable and predictable monthly payments over an extended period, making it easier to manage cash flow and plan for the future. Interest payments on commercial mortgages are also often tax-deductible, resulting in lower overall borrowing costs.

Lenders assess several factors before approving a commercial mortgage, including the borrower’s creditworthiness, the property’s value, potential rental income, and the borrower’s financial plan. Interest rates play a pivotal role in determining the total cost of the loan over its term.

Fixed vs variable rates

Commercial mortgage rates can be classified into two main types: fixed and variable.

Fixed Rates

A fixed-rate commercial mortgage offers stability and predictability. The interest rate remains constant throughout the loan term, which can range from 5 to 30 years.

This option is ideal for borrowers seeking a consistent monthly payment, making it easier to budget and plan for the long term. However, fixed rates are often initially higher when compared to variable rates.

Variable Rates

Variable-rate commercial mortgages have interest rates that can fluctuate based on a benchmark interest rate, such as the Bank of England base rate. These rates can change periodically, usually on an annual basis, although it has changed significantly more frequently since December 2021.

While initial payments may be lower than those of fixed-rate mortgages, borrowers face the risk of interest rate increases, which can lead to higher payments over time.

How are rates calculated?

Commercial mortgage rates are determined by a combination of factors, including:

Market conditions

The overall health of the economy, inflation rates, and supply and demand dynamics in the real estate market can influence interest rates.


Borrowers with strong credit histories and financial profiles are more likely to qualify for lower interest rates.

Loan Term

Shorter loan terms typically come with lower interest rates, while longer terms may have slightly higher rates to account for the increased risk to the lender.

Property type and location

The type of property and its location can impact the perceived risk of the investment, which in turn affects the interest rate.

Lender’s margin

Lenders add a margin to the benchmark interest rate to cover their operational costs and profit.

Should you fix your mortgage rate?

Deciding whether to choose a fixed or variable commercial mortgage rate depends on your financial goals, risk tolerance, and market outlook. Consider the following factors:

  • Stability vs. Risk: Fixed rates offer stability but may have slightly higher initial costs. Variable rates provide potential savings initially but carry the risk of rate increases.
  • Market Predictions: If economic indicators suggest that interest rates are likely to rise, locking in a fixed rate could be a prudent choice.
  • Long-Term Plans: If you plan to hold the property for a long time, a fixed rate might provide more certainty over the loan term.
  • Short-Term Gains: If you’re aiming for short-term gains and are comfortable with potential fluctuations, a variable rate could be advantageous.

Commercial mortgages with Stewart Hindley

Here at Stewart Hindley, we provide tailored solutions for businesses and investors seeking financing for commercial real estate projects. With a deep understanding of market trends and borrower needs, we offer a range of mortgage options, including fixed and variable rates, to meet the diverse requirements of clients.

If you’re considering buying a commercial property, get in touch with a member of our skilled and experienced team who are on hand to help you.

Bed and breakfast and hotel mortgages when base rate is high

Is it worth getting a commercial mortgage at a high Bank of England base rate?

If you’ve been considering buying a quality bed and breakfast or a hotel, believe it or not, now is not the time to flinch at the Bank of England Base Rate (BoE BR) increases, in fact this should be seen as a rare and unique opportunity to purchase your dream lifestyle hospitality business.

5% used to be a normal and competitive interest rate for hospitality

Although BoE BRs are at a recent all-time high, they are still relatively low in comparison to the pre-financial crash back in 2008, when the BoE BR was 6%, at the time this rate was the norm and reasonably competitive.

The current prevailing rate of 5% can in this context still be seen as reasonably competitive and importantly this didn’t prohibit people buying businesses back in the day.

Interest rates are more realistic in 2023

It is only since the financial crash of 2008 that we’ve seen BoE BRs plummet to near zero and which in-turn led to an unprecedent rise in business values, because cheap money was readily available, supported by the Bank of England’s policy of quantitative easing and latterly the financial support offered by the UK Government to businesses during and post pandemic.

Despite the ups and downs of Base Rates, Lenders who are considering lending to people requiring commercial mortgages have always factored in potential rises in BoE BRs to ensure that their loan servicing was secure, even if BoE BRs increased to 12% which is a doomsday scenario.

On a positive, the increase in Base Rate to 5% has led to more realistic pricing of hospitality and leisure businesses, as there is a real perception out there that these increases will make borrowing money more expensive, which it indeed will.

Cost of borrowing offset by reduction in market pricing

Conversely, the increased cost of borrowing will be off-set by a reduction in market pricing, especially so in the hospitality and leisure sectors that are prone to discretionary expenditure, so on balance, you’ll not be overly disadvantaged by higher BoE BRs, when buying a hospitality or leisure business.

You might ask why this is the case, the answer is simpler than you might think: vendors generally sell their hospitality and leisure business for a variety of reasons, retirement being the most common, followed by death, divorce and debt.

As a consequence, business owners who want a rapid exit with an expeditious sale are very concerned that the increases in BoE BRs have caused market uncertainty, with commercial mortgage debt being considered as unaffordable by many prospective purchasers, when in fact debt is still comparatively cheap.

Hotel and Bed and Breakfast purchase prices discounted by up to 20%

To counter these concerns, vendors are turning to discounting the guiding price of their businesses for an expeditious sale, sometimes by up to 20% or more, which wouldn’t have even been considered by the vendor or by their sales agent some 18 months ago.

So how can you take advantage of this unique and limited opportunity before the market corrects itself and prices of hospitality and leisure businesses return to pre-BoE BR increase norms.

Specialist commercial mortgage brokers can help

Quite simply, you need to engage with a firm of specialist hospitality and leisure brokers, such as Stewart Hindley, who have the sector expertise and knowledge to provide a funding solution that ticks the lenders’ boxes and one that is affordable at the current BoE BR.

Stewart Hindley can provide funding solutions over longer terms, ensuring that your loan repayment are affordable at the current BoE BR, with options like interest only payments and capital repayment holidays, to off-set the current high cost of borrowing until Base Rates reduce, as well as seasonal payments to improve cash flow and debt servicing.

The future of base rate hikes in 2023

Looking to the future, BoE BR are predicted to reduce to circa 2.5% by the 2nd Qtr. of 2024, so the hike in Base Rates will be short lived and will result in businesses returning to more robust market pricing in the 2nd Qtr. so, there is a limited window of opportunity to realise your dream of owning your own life style Bed & Breakfast or Hotel.

In summary, Stewart Hindley can not only secure the most competitive commercial mortgage debt for you, but also manages all aspects of the debt raising, ensuring that you are not over paying for your business purchase and that your debt is affordable even if Base Rates increase in the future

To hear more about how Stewart Hindley can help you with a commercial mortgage to buy your life style business, get in touch

Managing your business loan repayments

How can you manage your business loan repayments?

In these uncertain economic times and compounded by the increase of Bank of England base rates, which have resulted in an increase of the  cost of borrowing and loan repayments, there is a unprecedented pressure on all businesses to make ends meet, especially when it comes to managing their loan repayments.

The question is, how can I manage my businesses loan repayments when there isn’t any spare capacity in my cash flow?

Many business owners have experienced sleepless nights worrying about repaying their loan, which if not managed, can result in business failure.  So how can you avoid this potentially disastrous situation? Surprisingly, the solution is relatively straight forward. There are a number of options available to business owners like you.

Early communication is key

The first and most important thing is to communicate with your lender. Advise them as soon as possible that you have a problem, ideally well before the debt debit for your loan is returned as unpaid as this is often followed by a call from your lender, which puts you on the back foot as it indicates that you may not be in control of your business finances. This could lead to the transfer of your loan account to your lender’s business support team. This isn’t a place where you need to be and this transfer can in the worst case lead to recoveries action.

When speaking with your lender how you do maintain their confidence in you and your business?

It is important to understand that the lender is there to help you wherever possible, they have a mandate under their terms of business to do so. Explain succinctly how the problem has arisen, which could be the after effects of the pandemic or some equally significant situation such as an unexpected loss of revenue, or perhaps a personal family matter.  The lender will want to understand how long the problem is likely to last for and what you are going to do about it, all of which can represent challenges for you and the lender.

Flexibility on a business loan repayment

One instance may be a short-term cash flow situation which can be resolved by micro managing your cash flow to meet loan repayments. If there isn’t the scope within your business to do so, then there are various other ways that can improve the situation. For example you could request a loan repayment holiday for 3 months to provide you with some breathing space to remedy matters, alternately, request that for a period of time, say 12 months, that your loan reverts to interest only payments or just capital repayments and finally ask for an extension of the loan term to make your loan repayments more affordable and in line with your businesses cash flow.

These steps will help your business survive but will also improve your relationship with your lender as they always appreciate transparency.

Commercial and hospitality loan specialists

If you feel somewhat daunted and possibly embarrassed dealing with your lender, a specialist finance intermediary, such as Stewart Hindley & Partners can act for you to secure the best possible outcome. Get in touch with our loan specialists today.

Refinancing a Commercial Loan

Increase in loan repayments

We’ve all seen the doom and gloom in the print and digital media around the cost of borrowing and have probably experienced an increase in our monthly commercial loan repayments, unless on a fixed rate loan, which despite the initial higher cost of borrowing is now paying dividends.

As we know, the increase in the current cost of borrowing is in theory to curb inflation.  Whilst this is a laudable aim, it doesn’t take away from the fact that in the medium term, you’ll be paying approx. 20% more each month, over a typical 20-year loan.

When will the Bank of England reduce the base rate?

The $64,000 question is ‘when will the Bank of England Base Rate reduce?’ The answer is probably when inflation returns to the Bank’s target of 2%. This could be some time, with analysts predicting at least 3 to 5 years before the inflationary supply side chain returns to normal, as too many people are chasing too few goods with energy, petrol, diesel and food stuffs all being key drivers to supply chain inflationary pressures.

This begs the question…

What can I do about my commercial loan repayments in the short to medium term?

What can you do in the short to medium term to counter these pressures that directly impact on your ability to service your loan repayments?

The old saying “cash is king” has never been more apt.  Having liquid funds available are essential, as they provide flexibility during an inflationary period or crisis and many lenders look to your businesses’ cash flow for loan servicing. In banking terms this is known as CFADS (Cash Flow Available for Debt Servicing).

Generally, it is not declining profitability that drives a business into duress or insolvency, but the ability to service its creditors, principally bank loans and VAT liabilities, which result in cash flow duress.

As Basil Fawlty once said “I may be stating the bleedin’ obvious”, but it is generally recognised that many operators focus to much time and attention on revenue, rather than cash flow which in many ways can be seen as counterintuitive, as a top-down strategy is broadly accepted by business pundits, but there is a strong case for a bottom-up strategy, cash flow being the case in point, to avoid duress and an insolvent situation which all lenders test for.

Improve your businesses cash flow by extending the term of your existing loan.

If your existing lender isn’t sympathetic to rescheduling or extending your loan, then there are a number or lenders in the market who’ll consider the case for refinancing.

This could be on an interest only, or part interest basis over an extended period and lenders often offer a 12-month capital repayment holiday, to take you over the initial cost of the refinancing.

Refinancing your loan may help your business remain secure

Refinancing should be seen in the context of putting your business on a secure basis, as retrospective comparisons on interest rate and the cost of borrowing pail into insignificance, when your business is under threat from your creditors or indeed your own lender.


To find out more how Stewart Hindley & Partners can assist you with your commercial loan or hotel loan refinancing and cash flow, get in touch on 01488 684834 or email


When is a Property Considered Commercial?

Residential properties are occupied by tenants who pay a fixed rate to live at your property. Whereas commercial properties are usually inhabited by businesses or companies to generate income.

A property is considered commercial when it is used for business or profitable activities. Examples of commercial properties include offices, shops, restaurants and leisure centres.

What is commercial property?

Commercial property is any property, building or premises that accommodates or provides commercial services for profit.

By law, commercial property is defined as any property that is not used for domestic purposes and is the ‘dealing with business properties or land that generates profit for the owner’.

What is commercial finance?

Commercial finance allows you to fund your essential business needs from property investment to hiring new staff.

This finance ensures businesses of all sizes and statuses can access the facilities to hit targets and generate cash flow.

Any business owner can apply for commercial finance and there are many types of commercial finance to consider. Usually, business owners choose between full commercial or semi-commercial finance.

Who can benefit from commercial finance?

Commercial finance services are available for a range of different industries, businesses and companies.

Dental Surgery Financing

A service that is always in demand, dental surgery involves expensive high-tech equipment and a demand for the latest treatments.

If you are looking to set up a dental surgery, expand a current dentist practice, move to larger premises or provide cutting-edge technology for your consultants in dentistry, dental surgery finance can provide flexible business funding solutions.

Equestrian Financing

You may be looking for commercial finance for your equestrian business to fund commercial mortgages for stables, yards or outbuildings.

Commercial finance will allow you to secure the financial funding to bring your plans to action. No matter your budget or business plan, your equestrian business can access bespoke loans through equestrian commercial finance.

Vet Practice Financing

Pets are an important part of any family so vet practices must ensure they keep up with and can offer the latest advancements in animal medicine.

Up-to-date technology is a great financial investment for vet practices so we understand finding a reliable lender who understands your profession is imperative.

Vet practice financing can support your business by funding specialist equipment, refurbishments and upgrades, partner buy-ins and computer software.

What is a commercial property mortgage?

Commercial mortgages are loans used to complete the purchases of commercial property premises or to buy an existing business.

This mortgage would be used to secure a commercial property such as an office building or shopping centre, whereas residential mortgages are used to fund the purchase of a home.

How to promote a commercial property

You can promote your commercial property in various ways from handing out flyers to creating your own website. Here are three ways to advertise your commercial property:

Property listing pages

One of the best ways to advertise your commercial property is through property listing sites. Websites such as Rightmove, as well as your local estate agents, will list available commercial properties for sale, lease or auction.

A virtual tour

Creating a virtual tour allows business owners to discover the space via a computer or mobile.

This is a quick and effective way to view commercial space and promote your commercial property to potential inhabitants.

Marketing flyers

This flyer should include all aspects of information about your property from high-resolution images and the on-map location to contact information and rental rates.

It is also a good place to mention surrounding amenities, parking information and floor plans so the business owner can access all information in one place.

How we can help

At Stewart Hindley, we are proven financial brokers that are proud of what we do. For more information about commercial properties, please get in touch and find out how we can help you.

What are the benefits of refinancing a commercial mortgage?

Buying a commercial property can be a prudent investment. And, over recent years, the popularity of commercial property investment has increased rapidly, with investors looking for new opportunities to make substantial returns on their investments.

For businesses or individuals who own commercial property, refinancing their commercial mortgage can allow them to free up funds and change the terms of the mortgage.

If you’re a commercial property owner looking to refinance your commercial property, you have certainly landed in the right place. Within this article, we’ve taken a look at the benefits of refinancing a commercial mortgage.


What is a commercial mortgage?

A commercial mortgage is a mortgage used to purchase a commercial property. The repayments can be structured either with fixed or variable interest rate payments, depending on the terms of the lender.

As well as purchasing a commercial property, this type of mortgage can also be used to develop new premises, buy land, expand business premises, complete commercial developments and projects, or develop an existing property.


How does commercial mortgage refinancing work?

Many commercial property owners choose to re-mortgage their commercial premises as a way of accessing additional funds.

But what does the process involve?

Refinancing a commercial mortgage involves paying one mortgage off in order to replace it with another. This process allows commercial property owners to not only secure a better interest rate, but it can also free up more cash to invest in their business.

Whether you own or part-own a commercial property, you can re-mortgage and negotiate new terms with your lender, providing that you have a proven track record for making your mortgage repayments. You may also choose to look elsewhere for better deals but, if you’re switching to a new lender, they will expect you to pass their affordability and eligibility checks.


Why refinance a commercial mortgage?

Property owners choose to refinance their commercial mortgages for a number of reasons, including:

Releasing equity from the commercial property

Refinancing a commercial mortgage will allow you to release any equity you have built up since you took out the initial mortgage. This capital can then be used to invest in the business, improve cash flow, or buy additional properties.

Secure a better deal

Refinancing your commercial mortgage may allow you to access a better interest rate or better terms. If, for example, your fixed rate is coming to an end, refinancing may help you secure a better deal than being switched over to the lender’s standard variable rate.

Keep in mind that, if you switch to a new lender, you may be liable to pay an early exit fee.


Borrow more

If the value of your commercial property has increased since you took out your current mortgage, you might be able to borrow more against the value of the property. This can be useful if you want to free up funds to carry out renovations or maintenance on the property or expand the business.


Change the type of mortgage

If you are planning to change the mortgage from an owner-occupier agreement to a commercial investment, refinancing can allow you to do this. This can be useful if, for example, your business has outgrown the property and you want to let it yet rather than sell it.


What are the pros and cons of refinancing your commercial mortgage?


The pros

The benefits of refinancing a commercial mortgage are:

  • Access better deals
  • Reduce monthly outgoings
  • Release equity from the property
  • Access funds needed to grow and expand businesses


The cons

Of course, as with any type of financing, there are also potential downsides to consider if you’re thinking of refinancing your commercial mortgage, including:

  • The repayment period may be extended
  • Additional fees such as broker fees, valuation fees, and legal fees


Find out more

If you’re looking to refinance a commercial mortgage, 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. Speak to one of our skilled and experienced team; we are always on hand to answer any of your queries regarding commercial mortgages. Get in touch today.

What is the difference between a guest house and a hotel?

When choosing somewhere to stay, many travellers automatically think of hotels. But there are a whole host of other accommodation options available, including guest houses.

The boundaries between a guest house and a hotel can sometimes be blurred; after all, both are based on the same principle of providing accommodation to paying guests.

However, there are a number of key differences that differentiate these two types of accommodation.


What is a guest house?

A guest house is a private house, which provides accommodation for guests. Guest houses are usually owner-operated, with many hosts actually living on the premises. The vast majority of UK guest houses have no more than 5 bedrooms and offer a distinctly home-from-home feel.


What is a hotel?

A hotel also caterers for customers who require overnight accommodation. However, the hotels are typically bigger than guest houses, have more facilities, and can accommodate more guests. They can often hold hundreds of guests at any one time and are frequently part of larger chains.


What are the differences between a guest house and a hotel?

The key differences between a guest house and a hotel are:



Guest houses tend to be a lot smaller than hotels. Even though they can accommodate fewer people, guests still enjoy a comfortable stay and appreciate the many personal touches that come with guest house stays.

As guest house owners usually live on the premises, they are incredibly attentive and often go above and beyond to ensure that their guests have a great stay.



Generally speaking, guest houses are cheaper than hotels. They can also work out more cost-effective for guests staying for longer periods as they may have access to facilities such as kitchens to cook meals in rather than always dining out, as well as clothes washing facilities.



Across the hospitality sector, you will find that the vast majority of guest houses are run as family businesses and tend not to have a reception desk or a concierge service. This means guests usually receive a more personal level of service.

On the other hand, hotels are commercial businesses that employ full-time staff with dedicated roles, operate around the clock and always have lots of facilities and amenities on-site to enhance their guests’ stay.



Guest houses tend to have comfortable but basic, home-style facilities. Hotels, on the other hand, typically have more facilities, including in-room mini-bars, bar and restaurant areas, gyms, and more.


Buying a guest house or hotel?

If you’re considering buying a commercial property, such as a guest house or 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 commercial mortgages.




How to refinance a commercial mortgage

Similar to refinancing a residential mortgage, refinancing a commercial mortgage involves switching from one commercial mortgage to another in order to release capital or save money.

If you’re looking to refinance a commercial mortgage, you’ve landed in the right place. We’ve created a helpful guide outlining everything you need to know about refinancing a commercial mortgage.


What is a commercial remortgage?

In simple terms, a commercial remortgage is a refinancing method for mortgages secured against a commercial property. Many commercial property owners choose to remortgage their property in order to save money on their repayments or even raise funds for their existing business or a new business venture.


How does a commercial remortgage work?

The process involved in refinancing a commercial mortgage is relatively simple and involves property owners replacing their existing loan with a new one. Your mortgage broker will talk through all the options available to you and try to find the best deal for your circumstances. All rates and terms will be discussed, providing a great opportunity for you to ask any questions.

With a commercial remortgage, you can:

  • switch to a better deal with a new provider
  • release equity from your commercial property
  • borrow against the value of your commercial property
  • switch from owner-occupier to commercial mortgage.


How much can you refinance up to?

If you’re thinking of refinancing your commercial mortgage, there is no rule on how much you can borrow. However, the lender you choose will need to be confident that you can afford to make the new repayments.

The rates you will be able to access will depend on your level of risk. You should also consider that the vast majority of commercial mortgages will come with a lender arrangement fee which is usually between 1%  to 2% of the total loan amount. You will also need to factor in valuation and legal work charges when budgeting.


How does it differ from a standard homebuyer remortgage?

The main difference between a commercial and homebuyer remortgage, is that commercial remortgages are designed to be applied to loans that are backed by non-residential real estate. Commercial mortgages are tailored for the commercial sector and their business needs, unlike residential mortgages which are designed for homes and residential properties.


Pros of commercial remortgages

Commercial remortgages offer a number of benefits, including the ability to raise funds quickly, gain access to competitive loan terms, improve cash flow if needed, and access better deals.

Despite there being lots of benefits, you should also consider that refinancing a commercial mortgage also means that you may be taking on a considerable amount of debt. With this in mind, you should always weigh up whether this is the best option for your business.


Why choose Stewart Hindley?

If you’re considering buying a commercial property or you’re looking to refinance a commercial mortgage, 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.

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 confident 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.