Many people dream of opening their own business, and many have their hearts and imaginations captured by the thought of running a bed and breakfast or guest house. Many people choose to pursue this upon or following their retirement, so they can dedicate themselves fully to the day to day running of the business. However, in order to achieve this dream, additional funding is often required. We can help to secure that funding in the form of a mortgage.
Thankfully, for those who want to open up such a business, lenders will often gladly provide funding. This is because the freehold status and strong residual residential value of such a property is generally seen as offering excellent security, meaning that the lender does not fear making huge losses should the borrower fail to make payments. As a result, the loan-to-value percentage can often be as high as 70%, with the borrowers generally expected to provide a deposit of 30% or more.
Securing such a loan is usually quite simple, though close attention to detail is required to ensure that the application is as attractive as possible to the lender, boosting the chances that they’ll provide you with the funding you need. By providing proof of trade within the bed and breakfast industry, or of any other relevant experience, you can give lenders reassurance that you are less likely to have teething problems in the early stages of the business. Three years of vendor trading accounts, or strong income projections for start-ups, are looked on favourably for similar reasons. A good personal credit history is generally a must so lenders will know there’s little risk of you not paying on time. Of course, there is one thing that lenders will look favourably upon, and that is a comprehensive debt application from our team here at Stewart Hindley and Partners.
We will personally source the most competitive mortgage available on the market, based around your personal and financial circumstances and the value of the business itself. As an independent mortgage brokers, we have no ties to external lenders, meaning that there is no bias tainting our services, allowing us to find the best mortgage for you. We operate on a “No Win, No Fee” philosophy, which means that you only pay the broker fee upon receiving a written acceptance of an offer of finance, either from ourselves or the lender.
We will work extensively with you and the lender to secure bed and breakfast or guest house finance and funding, ensuring that secure plans are put in place for the business and that the terms are beneficial for both parties.