Commercial Mortgages

haymans74

Hi,

I'm new to these boards, so please be gentle


My boyfriend and I bought our first home in June of this year. We paid £245,000 for it, £24,500 of which was the deposit. We have a Halifax mortgage on a fixed rate of 4.69% for two years.

Right, that's the basics!

Now, we've decided to have a change of lifestyle. Due to family commitments etc, we would really like to leave London and buy a b&b, preferably in East Anglia. We have found a possible (but haven't been to look at it in case we fall in love with it and can't afford it). It's £310,000.

As I understand it, we would need a 15% deposit which would be around £46,000.

I can't imagine our property will have risen much in value in the last six months, so I guess we have the original £24,500 in equity and are short of around £22,000 to achieve our dream.

We are also getting married in May 2007 and so have no savings as we're paying for the wedding. We are planning to take a six month holiday payment from our mortgage from January in order for us to pay for the wedding in full without using credit cards etc. Ideally, we would like to buy the b&b as soon as possible after we are married - but realise that may not be realistic.

So, my questions are:

1) Do we hold tight and hope our property increases in value substantially in the next year in order for us to buy the b&b?

2) How do commercial mortgage lenders calculate how much they will lend you? Keeping in mind that the b&b will be my sole income as I will have to give up my job. Husband to be may possibly hold down another job.

3) Do residential mortgage brokers deal with commercial mortgages?

4) Can you recommend any commercial mortgage brokers?

5) Is there any way of us raising the £22,000 without waiting for our property to rise in value?


Phew! Sorry for so many questions! Any advice gratefully received.

MortgageMamma

1, Thats a good option
2, all do it differently, you are best to speak to a broker and take advice
3, some do, some don't -some just refer it to the commercial arm of their mortgage network or a company they introduce to
4, Brokers who use these boards are not allowed to recommend other brokers who use these boards - so not much chance of a recommendation on the thread for you I'm afraid
5, secured loan or further advance on mortgage, unsecured loan

haymans74

Thank v much for the reply

I also realise we may have to pay a hefty redemption clause if we sell in the first two years.

Very frustrating not being able to do what we want to immediately! I guess what I need to do is talk to a broker in May once the wedding chaos is over.

MortgageMamma

I think thats a really good idea, its great when you get a good idea and you can see your dreams coming closer, but it will only be sustainable with a lot of planning. If you really have the urge to start planning now, forget looking at property for the time being, and speak to your local business link - they will put you in touch with an adviser who can help you build a business plan and make you consider the implications of the business, how you will run it, how you will fund it etc, They are great people to talk to not matter how experienced you are in your field. When I recently set up my company they were very supportive in many ways. The beauty of it all is it's all government funded, so any advice you get is for free - here's the link http://www.businesslink.gov.uk/

haymans74

Thanks again! I'll look into business link.