Mortgages for Restaurants, Pubs and Hotels

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Why Choose Us

0 %
5-star reviews on Google
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market
£ 0
total donated to various charities

Why Choose Us

0 %
5-star reviews on Google
£ 0
total donated to various charities
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market

Ascot Mortgages is one of the UK’s experts in arranging commercial mortgages for our business customers, whether they are acquiring new businesses, or re-financing existing ventures.

Securing commercial mortgages for restaurants, hotels and pubs requires a great deal of care and experience in the commercial mortgage market as lenders may apply stricter lending criteria and demand lower loan to value ratios than some other types of commercial mortgages. Understanding what the lenders are looking for, and what information we can use (if any) to ensure the application is accepted with favourable terms is one of our key priorities.

Ascot Mortgages utilise our in-depth knowledge of the commercial mortgage products available, together with our vast experience gained by working with the commercial lenders, to find and secure the most suitable funding solution for you.

What Our Clients Say About Us

5.0 Based on 122 reviews from review us onLucy B. ★★★★★ Having Phil as my mortgage advisor was great from the very start! He is down to earth and speaking to him was always a pleasure. The kindness, compassion and support I have been given all the way through what can be a stressful process was immeasurable. Phil and Jardelle worked as a solid team and was able to make me feel at ease all the way through buying my first home. The team were always available and the communication between everyone was always clear and I felt safe in the hands of the company as a whole. Thank you for helping me buy my first home!Flora R. ★★★★★ I worked with Richard (Protection Adviser) for a couple of days to sort out life and critical illness insurance. Absolutely brilliant, he found me and my husband the perfect policy. Very knowledgeable and easy to get on, he definetely makes things easy to understand. Thank you for the great service provided.Matthew R. ★★★★★ I've dealt with Phil at Ascot Mortgages for a while now and Phil always comes back back to me with the right plan.Keep the good work up!rafal W. ★★★★★ I would thoroughly recommend Phil Greenwood at Ascot Mortgages ltd to anyone looking to seek advice on purchasing a home.Phil was absolutely fantastic. He made the process very smooth and easy and was always there to answer any questions I had.Shahid L. ★★★★★ This company has been truly amazing in constantly giving me the support and help i need for my mortgage and for their continuous work ethic guiding customers like myself and educating them into making the best possible decisions. My special mention goes to Phil Greenwood who deserves every single credit for his brilliant work and communication skills. The more I got to work with Phil, the more he gained my respect as he is a hugely likeable man and possibly the best mortgage advisor yet. Even after I finished my time with Ascot Mortgages, I will never lose my trust in the company and I hope they exceed their business and gain even more success and popularity.Best wishes,Shahid Latif and familyPretty L. ★★★★★ Phil helped me renew my mortgage. He was great at keeping me updated with any rate changes and secured a lower rate than at the time my mortgage went through. Thank you Ascot for your supportNikki E. ★★★★★ Huge thanks to Richard Johnson for sorting out all of my insurance policies! I had accumulated a variety of life cover and various other policies over the years that all needed a good review and refresh. Richard was extremely patient and helped me to remove the duplication and choose the best cover to suit our current needs. I have used Ascot Mortgages for over 12 years and have met several members of the team, always finding the right help and support to work through what can be a complicated and stressful time. Thanks again, Richard!Aamir R. ★★★★★ As first time buyers we had very little understanding of how to go about applying for a mortgage. Phil was so helpful in cutting through all of the formalities and helping us to decide which mortgage would be best for us also ensured we collated all the details needed and kept us up to date on progress. The process of finding the right house was very stressful but the process of choosing and applying for the mortgage and life cover has been so straight forward that, at times, we were worried it was all a bit too smooth! Thank you for guiding us through this so professionally and with real understanding and personality.Andrew T. ★★★★★ Working with Richard at Ascot has been a great experience. He listened to us and was very professional throughout. This was our first experience with Richard but we've been using Ascot now for 6-7 years. Thank you all at AscotAngie B. ★★★★★ Always give a great service and find you a mortgage in a timely fashion.Alison is awesomeAndrew M. ★★★★★ We have used Ascot Mortgages for over 5 years now and have had excellent service throughout, primarily with Alison and Kevin. Our latest dealings have been with Richard Johnson who although new to us (and to Ascot I believe) has once again provided the 5 star level of service we have come to expect. His product knowledge is excellent offering a range of options supported with consistent communication and updates, always available on the phone or on email every step of the way.Ali H ★★★★★ Excellent service, a big thanks to Natalia Barry for her excellent support with my buy to let mortgage application, Natalia was professional, transparent, and kept me informed during all the process, and thanks to Jason jones for his assistance and support.david R. ★★★★★ I have dealt with Ascot for many years now and will always go back, recently had all my insurances re done by Richard Johnston at the firm, excellent service, communication and swift actions by Richard. Great deals on all three insurances and would recommend anybody to go to Richard for help. Thanks Richard 👍Eve Alexandra C. ★★★★★ We used Ascot Mortgages to purchase a home as first time buyers, Ellie assisted us with this and went above and beyond to ensure everything went smoothly, all questions were answered, and any queries were solved.As first time buyers, myself and my partner were quite nervous and clueless as to what to expect when getting a mortgage and what not, and Ellie made this so simple and explained everything in a way that we thoroughly understood what was happening with our house buying journey, without it being pure jargon.I can't thank Ellie enough, she truly has been a star during the whole experience and is an asset to Ascot Mortgages.She is someone who I would definitely recommend to friends and family if the opportunity arises, and has made this whole experience a very stress free and exciting one!Thank you for everything Ellie!Emma W. ★★★★★ Alison helped me to get the right mortgage for my current situation and was very supportivehelen L. ★★★★★ Phil Greenwood dealt with my recent remortgage, he made sure I had the best product to fit our HMO criteria. Then chased solicitors for me and made sure I completed around the date I wanted to avoid my ridiculous rate I was about to be switched to. Thanks Phil, great job! Ready for my next mortgage now so I will be coming back 🙂Mark C ★★★★★ Excellent service from an excellent representative. Very professional and helpful company. Thank you for all your helpDamian L. ★★★★★ I recently purchased a buy-to-let from Auction and Ascot Mortgages, in tandem with Ascot Bridging Finance, supported me through the whole process. Once the property purchase via a bridging loan was complete, Ascot Mortgages worked out the best options for me, despite the Banks rising interest rates and spiralling UK inflation and managed to secure me a competitive mortgage rate for that property. I wouldn't hesitate in going back to Ascot Mortgages in the future and look forward to working with them again in the near future. Thank you for everything you've doneJuliet B. ★★★★★ Thank you to Alison for helping us and sorting out our mortgage. Swift, reliable and very helpful. Very much appreciated. God bless you abundantly 👍👌🤝gareth P. ★★★★★ Been with Alison and team for more than 25 years. Needless to say, very happy...Jo T. ★★★★★ We have been using Ascot Mortgages for the last few years and they have done 11 buy to let products for us.We have found Alison, Phil, Jason, Jardelle and the team to be excellent at finding the best product for us and to work at pace when we are buying from auction and have a deadline to meet.Communication is very good and nothing is too much troubleBen H. ★★★★★ I can't recommend Ascot Mortgages highly enough.We have used them for all of our Mortgages . They are professional and friendly and have walked us through all our options, they always have the time to talk to you and go the extra mile to get you the best deal. It wont be long till I'm calling on their services again, I wouldn't go anywhere else.If you want a mortgage, there's only one place to go!Dog J. ★★★★★ Ascot went the extra mile to help me acquire a mortgage. With the help of Jason and Ellie I was able to get a competitive rate after 3 other firms had told me they couldn't help me. Great levels of communication throughout, I would highly recommend!Ursula B. ★★★★★ Alison was very friendly and professional in securing the right bridging for us and at a very competative price. This ensured that we were able to place an immediate offer and not miss out on our forever home. Later her help and support in finally getting our completion over the line was nothing short of a miracle. I would strongly recommend both Alison and the team at Ascot Mortgages.primrose C. ★★★★★ ALISON IS BY FAR THE BEST IN THE GAME. ALL WE CAN SAY IS THANK YOU SO MUCH. They are passionate on customer service, even in my frustrated time Alison, Jadelle, Ellie I could name them all. May the good LORD BLESS YOU.js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

05.12.2023

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

05.12.2023

The advantages of a commercial mortgage broker

Time is precious to everyone, but especially for our customers who need a commercial mortgage. Often clients are running a business and looking to move to bigger premises, or are looking to move from rented to owned premises, meaning that they are simultaneously running a business and attempting to arrange a mortgage. Ascot Mortgages can save you the hassle of trying to do both these tasks by finding a mortgage that suits you.

Commercial mortgages for buying a pub

For clients wishing to borrow money to buy a pub, they are often buying the business, any fixtures and furnishing, and the goodwill of the business, if the pub is bought as a going concern. Due to this the amount that lenders will finance is often over fifty per cent of the value of the business, although this depends on an individual’s accounts.

Mortgage Repayment Calculator

Alison Gibson

Ascot Mortgage Expert

Remortgage

Remortgaging is applied when you keep

living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.

Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.

Commercial mortgages for buying a pub

For clients wishing to borrow money to buy a pub, they are often buying the business, any fixtures and furnishing, and the goodwill of the business, if the pub is bought as a going concern. Due to this the amount that lenders will finance is often over fifty per cent of the value of the business, although this depends on an individual’s accounts.

Very occasionally it is possible to arrange a commercial mortgage for a pub without accounts, such as if you have a fifty per cent deposit and an outside income that will be maintained, but this is the exception and not the norm. There is also often the option to receive ‘top up’ funding from the brewery and some people use their house, or other freehold property, as collateral security, in which case there is often the option to borrow the full price of the business.

For clients wishing to get a commercial mortgage for a pub there is often the option with many lenders to have an interest only period of repayment for the first twelve months, and mortgages can usually be taken over 15 to 25 years. It is common to find that mortgages can be repaid early, or in lump sums, without penalty. It is important to know the accounts, and financial strength, of the business that you intend to buy as this can be important in negotiating the best rate for your mortgage. Again using a broker like Ascot Mortgages means that you can rest assured that we will do this for you.

Commercial mortgages for buying a hotel

Many clients are attracted to the idea of buying a hotel, whether as a retirement venture or a new career. There are over 50,000 hotels in the UK* and so there is a lucrative market in providing commercial mortgages for these clients.

Often mortgages are available not only for purchasing but also for refinancing, debt consolidation, and refurbishment of the hotel. Due to the amount of hotels, and the attractiveness of buying one, lenders are typically keen to see a business plan with clear forecasts of profit. In addition lenders would want to see some, if not all, of the following: proof of identity; three months’ personal bank statements; three months’ trading bank statements; a business plan; and proof of experience. These variables, like with a pub, often determine the LTV ratio of your mortgage offer.

For clients wishing to buy a hotel, the repayment options are numerous. There is the option to have fixed rate or variable loans, and also the chance to pay back over a period ranging from 15 to 25 years. The important thing is, like with a pub, to have a clear understanding of why you believe that the hotel you are buying it profitable and to have a clear business plan which will clearly show lenders how you intend to meet the mortgage repayments.

*According to The Catering and Hotel Keeper Report published on their website.

Mortgages for buying a restaurants, guest house and B&Bs

Restaurants, guest houses and B&Bs are another popular option. The rise in demand for these freehold properties has meant that lenders are generally happy to lend to clients wishing to open a guest house, or B&B, because they provide good security. The LTV ratio of this sector has increased because lenders also believe that guest houses have strong residual residential value, and so it is often possible to secure high amounts of money through this type of mortgage. Although it varies across lenders, clients typically could expect to achieve 70 -75 per cent LTV, with borrowing terms across 15 to 25 years.

Like all commercial mortgages there are variables that may impact on how much you can borrow. Buyers with cash deposits of over thirty per cent are particularly attractive to lenders as are those with additional security, such as a mortgage-free home or other business. A business plan, some experience of the industry, and a good credit history also help clients to get the best mortgages. Like lenders for pubs and hotels, mortgage providers like to see good account records, or projections of income that is based on realistic criteria. The same criteria applies to applicants who wish to re-finance their mortgages, whether to consolidate debts or achieve a mortgage at a lower rate, or move a mortgage onto a fixed rate.

Whatever your lending needs, Ascot Mortgages are the first port of call in ensuring that you get the best advice and options for your situation. It is easy to get bogged down in the details of mortgage applications and products, but Ascot Mortgages can do that for you. In addition our great relationship with lenders means that we can match you to the right lender, saving you wasted applications that might taint your credit file.

The Financial Conduct Authority does not regulate some forms of Commercial Mortgage.

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FAQ

Yes, you can use a commercial mortgage to refinance an existing property. However, it is important to consider whether refinancing is the best option for you as there may be other financial benefits of holding onto your current loan. For instance, if you have a fixed-rate loan, refinancing could mean losing this benefit and being exposed to increased interest rates. Additionally, there may be costs associated with refinancing such as early repayment fees or legal and administrative costs. Therefore, it is important to speak to a financial advisor before making any decisions. They can provide further advice on your individual circumstances and help you determine whether refinancing is the right choice for you.

When applying for a commercial mortgage, it’s important to understand what factors lenders consider when assessing your application. Generally speaking, lenders will assess things like:

  • Your current financial situation – this includes your income, asset value and other debts;
  • Your credit history – this helps lenders determine whether you have been able to meet your current financial obligations;
  • The location of the property – lenders may consider factors such as local market conditions and rental demand when assessing a commercial mortgage application;
  • The type of property you’re looking to purchase – this includes things like the size, condition and purpose (i.e. whether it is residential or commercial).

It’s important to note that different lenders may prioritize these factors differently and may have specific criteria unique to their lending policies. Consult us and we will provide personalised guidance and help guide you through the commercial mortgage application process.

Yes, there can be tax benefits associated with a commercial mortgage. Here are a few common tax benefits that business owners may enjoy: 

  • Mortgage Interest Deductions: Interest paid on the commercial mortgage is generally tax-deductible as a business expense. This means that the interest portion of your mortgage payments can be subtracted from your business’s taxable income, potentially reducing your overall tax liability.
  • Capital Allowances: Capital allowances allow businesses to claim tax relief on certain qualifying expenditures related to commercial property. This includes items such as fixtures, fittings, and equipment within the property. By claiming capital allowances, you can deduct a portion of the qualifying costs from your taxable profits, reducing your tax liability.
  • Depreciation: Commercial properties are subject to depreciation, which allows business owners to account for the wear and tear of the property over time. Depreciation expenses can be claimed as deductions against taxable income, reducing the amount of tax owed.
  • VAT Reclaim: If the commercial property is VAT registered, businesses may be able to reclaim the Value Added Tax (VAT) paid on the purchase price or certain costs associated with the property. VAT reclaims can result in significant tax savings for businesses.

It’s important to note that the specific tax benefits and allowances can vary based on factors such as the nature of the property, business structure, and individual circumstances. Tax laws and regulations are subject to change, so it’s advisable to consult with a qualified tax professional or accountant to understand the current tax benefits and implications associated with a commercial mortgage in your specific situation.

The approval process for a commercial mortgage typically ranges from 4 to 8 weeks, but the duration may be longer if the purchase is more complex.

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