Hotel Mortgage

I need a hotel mortgage, how can you help me?

Our hotel mortgage service is comprehensive and ensures that you have the very best chance for success.

We will assign a dedicated independent commercial finance broker to you who will discuss your requirements in detail.

Initial enquiries are free of charge or obligation.

Call your FT award winning independent financial adviser in confidence now on 0800 0112825 or complete the contact form and your dedicated adviser will contact you to discuss how we can help you.

Remember our fee guarantee: you won’t pay any fees unless we can help you.

Our Service

After discussing your proposal with you, your commercial finance broker will approach every lender in the marketplace to find the best hotel mortgage for you as quickly as possible. Because our brokers are independent, they have access to the entire marketplace.

Once your broker has identified a potential solution for you, they will discuss with you the options available, including all fees and monthly costs. If you are happy to proceed, they will then gain an agreement in principle from the lender.

When this is in place, your broker will assist you with gathering all the information you need and helping you to complete the application.

Our advisers know what every lender requires when it comes to the presentation of a proposal and they will give your proposition the very best chance of success – guaranteed.

Your broker will guide you through every stage of your application process – from the initial application to completion.

Your broker is part of Worldwide’s team of financial experts meaning that if you need any further advice, we will be able to help.

What kind of costs do I need to budget for when applying for a hotel mortgage?

Costs you will usually need to budget for are as follows:

• Stamp duty (which is payable on the value of the property if you are making a purchase over £150,000)

• Legal fees

• The cost of stock at valuation

• Valuation fees

• Survey fees

• The lender’s arrangement fee

• Accountant’s fees, if you need a business projection for example

• It’s also advisable to keep an amount to use as working capital

• Your broker’s fee – we will tell you this in advance.

You may be able to add some of these fees to your mortgage. Your independent commercial finance adviser will be able to assist you with working out your budget.

How much can I borrow with a hotel mortgage?

The average amount you can borrow is usually 70% of the total purchase price, which is an amount that includes the property value, the goodwill (which is the business element of the property) and the fixtures and fittings.

Exactly how much you can borrow will depend on a number of factors:

• The size of the hotel, specifically the number of bedrooms – if you have a hotel with more than 20 bedrooms, this may mean the amount you can borrow is less than 70%.

• The hotel’s location and whether the business is seasonal

• What facilities there are on offer

• Your experience in the industry – generally speaking, if you have previous experience in the industry, you may be able to borrow more

• The trading accounts and information for the hotel.

What security will I need to provide?

Your lender will usually take the hotel itself as security; however, if you have any additional property which has equity in it you may be able to use this as additional security. In this instance, a higher level of finance might be available and the interest rate may be more preferable.

If you have any more questions, call us today.

Remember: You won’t pay any fees unless we can help you.

Call your FT award winning independent financial adviser in confidence now on 0800 0112825 or complete the contact form and your dedicated adviser will contact you to see how we can assist you.