Business mortgage with no deposit

[Chrisharry12345]

I know there are a few experts in this field on here so worth a go.

If I was looking to buy a holiday rental business that had almost a guaranteed income year on year from regular bookings, would anyone give me a mortgage without a deposit if I could show the income was enough to pay the mortgage?

[Knulpuk]

Depends on what income you have I think to service the mortgage - though they will not normally take the rental income itself into account.

Having no deposit also means if you were to get a mortgage it would not be at a very favourable rate.

[Ashers]

Most rental type mortgages now need at least 15%-25% deposit.

[Chrisharry12345]

Thats no good then

[Ashers]

Thats no good then

Business loan with your bank?

[Knulpuk]

The last property I bought abroad I just used the FISO Crowdfunding sub forum - raised the cash in 24 hours.

[Chrisharry12345]

Thats no good then

Business loan with your bank?

For the deposit or the whole thing? Its about 500k so would need a huge deposit..

[Zimmerman]

Mr Bank Manager

Can you lend me 100k so i can then get a further 400k mortgage.

Its a great business, but im not putting any of my own money in.


You need to give the Glazers' a bell Chris.

[Ashers]

Thats no good then

Business loan with your bank?

For the deposit or the whole thing? Its about 500k so would need a huge deposit..

Would have to be for the whole thing. Otherwise, you will have issues with 1st & 2nd charges.

[Chrisharry12345]

Mr Bank Manager

Can you lend me 100k so i can then get a further 400k mortgage.

Its a great business, but im not putting any of my own money in.


You need to give the Glazers' a bell Chris.

I know sounds stupid doesn't it. I wasn't thinking asking to borrow 100k for a deposit I was looking more at a 100% mortgage. I dont own enough of my home mortgage to use anything from that so im stuffed.

There is some 100% mortgages around for home purchases with large interest rates. I wondered if any of the banks or any schemes would back something with a full mortgage if they were confident enough that it was a solid investment. 2 full time wages and a business income clearing 60k profit per annum sounds alot lower risk than some of the mortgages that gets taken out these days.

I guess ill just have to wait until we win SDT

[Zimmerman]

Think so Chris.

Im not expert, but it seems like all the risk on the bank(s) and none on you ultimately.
They'd have people queuing out the door on that basis.