Taking steps towards owning a guest house

  • 27th March 2015
  • News
  • Stewart Hindley

Guest houses are similar to bed and breakfasts, and there are many of them to be found throughout the UK. Often family owned and generally inexpensive, they are popular stops for travellers who want affordable and comfortable accommodation. The owners of the guest house will generally live on the property. Many people dream of opening a guest house as a way to make a living or to make extra money during their retirement.

A guest house provides a level of comfort that rivals many major hotel chains. The family-like atmosphere attracts a lot of tourists who desire a level of service superior to hotels. For many owners, opening up a guest house allows them to turn their home into a business, and it also allows them to greet guests from around the world. This makes every week of business potentially exciting. However, for most people, the main challenge is purchasing the guest house and equipping it with all the facilities their guests will require. For a guest house to succeed, it has to offer high standards and needs to be in a suitable location for attracting plenty of guests. Both of these factors can cost people a lot of money when getting into the business of running a guest house. However, there are guest house and B&B finance options available.


Lenders will often look favourably upon lending against guest houses due to their freehold status and the strong residual residential value that such properties play host to. The average guest house mortgage will provide you with 60 to 70% of the loan to property value ratio, with a 15 to 20 year term and seasonal payments available. However, such a mortgage generally requires a deposit of at least 30% of the property’s value, proof of experience in the accommodation sector, a good personal credit history and three years of Vendors’ trading accounts or a strong income projection. Our skilled team can help you to take your application for a mortgage to the next level.

As whole of market brokers, we can source the most competitive loan or specialist guest house mortgage for your needs. The loans or mortgages that we source are subject to market conditions and your own personal and financial circumstances, but you can be fully assured that we will do all that we can to find the best possible deals for you. We want to help you achieve your dream of running a guest house, and our B&B finance service operates on a no win, no fee basis. If your application doesn’t receive a written acceptance from ourselves or the target lender, you don’t pay us a single penny. With our financial knowledge, we will do all we can to help you achieve your business goals.

Stewart Hindley

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