Is it Difficult to Get a Pub Mortgage?
Bankers or mortgage brokers usually turn down pub loan applications. They think there is a lot of risk involved. But, you must reach out to the modern bankers who are more open to such night club establishments and are more than willing to offer you loans. The strong reason behind this is ‘collateral’. Here it is a commercial enterprise therefore the collateral used is your office, building or pubs in case you want to set up a pub.
There are flexible options even for a bad credit holder. He can now opt for non status lending which allows him to procure loans despite of his county court judgments, bankruptcy, arrears etc. It does not matter to the creditor what is your financial status. Hence, it is known as non status lending. It involves lending money without any consideration of your financial condition.
Some of them who may look upon commercial mortgages as risk think that there is limited choice on product as well as its interest rates. Due to the risk involved in business loans, they ask for a down payment which is also known as the deposit of 20-30% of your actual mortgage amount. They will also ask for evidence on how you would repay them?
A new club house or hotel set up will require a business plan and projections on what would be the turn over and how do you plan to attain them. An old set up may require trading account details for the past two years so that the creditor is assured that you were doing well in the past two years and he can easily fund y
