Strong demand for high-quality freehold properties within the hotel sector has continued to push their prices up.
Lenders are keen to offer funding to the hotel sector as a freehold asset is largely seen as excellent security. The loan to value ratio has been steadily on the increase in this sector and, with additional security, it is often possible to secure high levels of debt.
Main Features
The terms of a commercial loan against a hotel or guest house vary considerably from lender to lender but as a general rule, the following will apply:
- 60% - 70% loan to business value ratio
- 15-30 year mortgage term
We are experienced in offering financial solutions for purchases, remortgages, debt consolidation, capital raising (extensions) and cash injections across the hotel sector.
Factors Affecting Your Loan Application
There are a number of factors which can help to make your application more attractive to a lender:
- A deposit of 30% or more
- Additional security
- Business plan
- Proof of experience
- Good credit history
- Two years' trading accounts or strong income projections
- Strong proposal from Christie Finance
When assessing a hotel or guest house mortgage application, any lender will also have to take into account the following:
- Good trading location
- Accessibility – is there a main road nearby?
- Is the building a stand-alone property or part of a complex?
- How the business will be run – owner-occupied or managed for example
Go to 'Our Offices' to find your local business mortgage representative now.
Christie Finance – The intelligent choice
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