Compare Mortgages for Guest Houses
In some cases, you will need to get a specific type of mortgage to buy a guest house, called a commercial mortgage. This is a mortgage which is designed for property that will be used as a business asset rather than as a private residence, and allows you to buy a property for the specific purpose of using it as a bed and breakfast.
You may find it easier to get a guest house mortgage if you can demonstrate:
A high deposit – this reduces your risk as a borrower in the eyes of the mortgage lender
A business plan - if you are starting up a new guest house business, you may need a 12 month cash flow forecast and projected accounts for next 12 months together with a detailed business plan
Up to date accounts - you may need up to three years’ worth of accounts if you are buying an existing guest house or looking to get a remortgage
Business acumen - proof of experience of running a successful business may count in your favour
Good credit history – no outstanding County Court Judgments (CCJs) or bankruptcy to your name
To find the best guesthouse mortgage deals, click on the tables above or call our mortgage team on 0117 332 6063.