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Mortgage or Business Loan

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lknights1987
lknights1987 Posts: 77 Forumite
Tenth Anniversary 10 Posts Combo Breaker
in Mortgages & endowments
Hi all,

I would like to buy a property for the business purpose to either to turn it into a bed and breakfast or turn it into rooms to rent.

Could I use a business loan for this or would I need a mortgage?

Also, could I rent a property and then rent out the rooms for business purpose?

Comments

  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    lknights1987 wrote: »
    Hi all,

    I would like to buy a property for the business purpose to either to turn it into a bed and breakfast or turn it into rooms to rent.

    Could I use a business loan for this or would I need a mortgage?

    Also, could I rent a property and then rent out the rooms for business purpose?

    Any experience of running a b&b ?
  • lknights1987
    lknights1987 Posts: 77 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    DCFC79 wrote: »
    Any experience of running a b&b ?

    Hi no experience running a b & b it will be the first time. Why do you ask ?
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Because it's very hard work.
    On call 24/7 trying to build up a new business.
    Running a HMO is also a piece of cake.
    Getting a BTL mortgage or a business loan requires capital and a business plan.
    Do you already own your own home with plenty of equity and a good income.
  • lknights1987
    lknights1987 Posts: 77 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    dimbo61 wrote: »
    Because it's very hard work.
    On call 24/7 trying to build up a new business.
    Running a HMO is also a piece of cake.
    Getting a BTL mortgage or a business loan requires capital and a business plan.
    Do you already own your own home with plenty of equity and a good income.

    Thanks for your reply. No, I'm currently renting a property ( I use to have a mortgage) and working full time looking for a change in career. I don't have much savings as well so wasn't sure if a business loan would help as I only have £10k savings.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Sorry but no one's going to give you a loan, be it a business loan or a mortgage, to buy a BTL, if you only have £10k in savings.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Op do you know the eviction costs and maintenance costs of running a B+B/ BTL business

    Legal and tax implications?

    If not, you will need do your own homework and as above with 10k savings, you will be hard pressed to find someone who will loan you anything
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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