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

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.

What Our Clients Say About Us

5.0 Based on 135 reviews from review us onNicholas S. ★★★★★ Fantastic service. Ellie and Jardelle were always quick to reply to any queries and very helpful throughout the process. Highly recommend!Stacey S. ★★★★★ Jason was brilliant to work with! Always on top of the transaction! Would highly recommend 👍Scott ★★★★★ Although I've not bought anything yet, they (Jason in particular) have been super helpful in my search for the right mortgage deal, whilst also giving an honest opinion during these difficult times. Would highly recommend.Sandra I. ★★★★★ Fantastic from start to finish! Natalia and Jason found me the best rate for my remortgage and they were extremely efficient! Best service I’ve ever received from a brokerage company. Thanks so much.Virmantas N. ★★★★★ Amazing service and great communication. Ellie Morgan had quickly completed all requests and over delivered all expectations.Highly recommended for those who want to get the stuff done without any delays!David W. ★★★★★ I have used ascot for 3 renewals since they done helped me with my purchase which was complicated and will continue to use them going forward. Very fair prices and very helpful and knowledgeable even with just general information.Adam B. ★★★★★ Natalia made life very easy for us when remortgaging. Third time using ascot always a breezeTaff G. ★★★★★ Ascot Mortgages have been brilliant. Easy to work with and incredibly helpful. I am always happy to recommend them. Natalia and Jason have made the whole process much easier than I was expecting. Excellent service.Daryl L. ★★★★★ We've had a fantastic experience with Natalia Barry and Jason Jones at Ascot Mortgages for our property purchases and refinancing. Their expertise, coupled with genuine care and understanding of our needs, made the process smooth and stress-free.They were consistently communicative, keeping us informed at every step. Their assistance in consolidating our protection cover was invaluable, simplifying what could have been a complex process.What set them apart was their personal touch – always polite and ready to pick up the phone for a chat. This level of personal engagement is rare and much appreciated.In short, Natalia and Jason are not just skilled professionals but also truly dedicated to their clients. We highly recommend their services to anyone in need of mortgage advice.Jason J. ★★★★★ Great company!Sarah A. ★★★★★ I have used this firm for several years and they have always been super helpful and supportive, attentive and resolved issues in really useful ways. Shout out to Alison, Ellie and Jardelle (and the team!)Georgia W. ★★★★★ We worked with Ellie to secure our mortgage and protection, and she was a dream! Being a first time buyer, I was quite clueless about the process, and in a time where mortgage rates have been quite high, she worked right til the end to make sure we were getting our mortgage at the best possible rate and was always available to answer all questions I had. Can't recommend enough 🙂Richard D. ★★★★★ Laura S. ★★★★★ As a first time buyer, trying to navigate through potential mortgages was a very daunting thought. Ascot Mortgages were recommended to me and I've been extremely happy with the service provided. They have guided me through every step and I finally have a mortgage. Very pleased and would recommend.Lucy 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!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.js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

16.02.2024

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

16.02.2024

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 percent 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 in 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 achieve a mortgage at a lower rate, or move a mortgage onto a fixed rate.

Whatever your lending needs, Ascot Mortgages is 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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