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Mortgage or Business loan

Hi I am thinking of buying a Bed and Breakfast, we need a loan of about £100000.
The B&B is on the market for 490000, and we have 390000 as a down payment.
We would only need the loan for say 5 years.
Is it better to get a mortgage or a business loan.
Also who do you think are the best brokers for either a mortgage or a business loan.
Thanks in advance.

Comments

  • silvercar
    silvercar Posts: 49,169 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Whichever gives you the lowest interest rate over the 5 years you’ll forecast you need it for.
    I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Hoenir
    Hoenir Posts: 6,685 Forumite
    1,000 Posts First Anniversary Name Dropper
    Be a mortgage whatever the loan type. As the lender will require security for the money adavanced. 
  • user1977
    user1977 Posts: 17,310 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    And if the income to service the mortgage is going to come from running the B&B, then it's a business loan anyway, surely? See a broker.
  • JC2005
    JC2005 Posts: 42 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Kind of what I thought, I was thinking if it was a business loan the interest might be tax deductible?
  • user1977
    user1977 Posts: 17,310 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    JC2005 said:
    Kind of what I thought, I was thinking if it was a business loan the interest might be tax deductible?
    I would guess it needs apportioned no matter what the lending product is called, if it's also your own home? But probably more one for a tax forum...
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