The clients: A married couple, experienced hoteliers and currently directors and both 50% shareholders of a hotel which they have been trading successfully for 10 years.
The property: A two-storey hotel with 20+ rooms and restaurant area based in a popular town in Kent. The property is valued at £2.5m
The finance required: Keen to avoid their mortgage reverting the lender’s Standard Variable Rate, the hoteliers asked us to help them remortgage. One small catch – the SVR was due to kick in in a matter of weeks, so we needed to act quickly.
The application process: We spoke to the business manager of a high-street bank which we often work with on leisure industry deals. Our contact agreed that, in principle, the bank would be happy to provide the necessary finance to the clients.
To support the mortgage application the clients needed to provide the necessary supporting documents including:
- Accounts and bank statements for the hotel business
- Proof of identity, address and income for both clients
The clients provided these documents the very same day and within 24 hours of submitting the full application we received a formal mortgage offer from the lender.
Here are the terms agreed to below:
Property value: £2,500,000
Loan amount: £805,000
Rate: 2.50% + Bank Rate term tracker
Term: 15 years capital & interest repayment
Lender arrangement fee: 1.5% of loan amount (£12,075)
Mortgage payment: £5,560 pcm
Consultant: Andy Elley, 01732 471644
29th August 2018