Case Study - B&B Blackpool

Commercial Mortgage Advice are flexible

The case

Our client required a 83% Loan to Value (LTV) remortgage. The client owned a Bed & Breakfast in Blackpool which was part of a larger property investment portfolio.

The clients wanted to release equity from the Bed & Breakfast property to raise cash to make improvements to the various properties in their portfolio.  Commercial Loan Advice didn't ask to see an estimate for the works, we were comfortable with their aim to improve the quality of their portfolio and make it more profitable. 

Why Commercial Mortgage Advice?
One of the key measures when underwriting a case is to check if the Debt Service Cover Ratio (DSCR) meets the ideal 120%.  Put simply this means that the business makes revenue of at least 120% of the mortgage payments.  However, not all cases reach these ratios and, while the high street banks may not bend this rule, InterBay can be flexible - subject to the circumstances.

In this case, the income generated from the B&B was insufficient to provide cover for the new mortgage payment in full but, due to exemplary credit track record of the borrowers and evidence of success with their other businesses, Commercial Mortgage Advice were happy to assist.

A fast turnaround
Within 48 hours of our client completing the basic paperwork, we’d given them a conditional offer, which was fully underwritten and credit checked. In total, it took 8 weeks from initial enquiry to completion.

Now the borrower has the funds, they've been able to improve both the standard of their property portfolio and their income stream generation.

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