Maximum hotel loans 'possible'

By JIM DOW

MORTGAGES up to 100 per cent for the purchase of hotels are still achievable.

Adrian Foster, of Christie Finance, the business mortgage specialist and sister company of Christie & Co, says that last year one major considerations was the smoking ban’s affect on business performance within the hotel sector and in turn the ability to service a loan.

Many people were not sure how the ban was going to affect profits but, from a finance point of view, this did not have any major effects on obtaining funding for the hotel sector.

He continues: “Another change in 2007 was the move towards 100 per cent funding. Traditionally many buyers used the sale proceeds from

The smoking ban did not have an effect on funding for hotels

domestic properties to provide a deposit towards the purchase of their chosen business.

“However, there has been an increase in the number of buyers who required 100 pc funding to enable them to either continue living in their property, or to take advantage of the rental market and thereby expand their asset base.

“Given the slowdown in the residential market towards the end of 2007, especially south of the border, this may become more and more common in 2008, as people are unable to sell their own home."

He added that while many banks were reluctant to proceed with deals on this basis, securing 100pc mortgages was still possible.