Mixed use mortgage, or solely commercial?

[ADogg]

Hello

In summary what is the difference between the two? There are further details below to explain our situation.

We currently own and operate a B&B, in which we also live. To purchase it was a laborious affair and we managed to get there with a commercial mortgage through a Broker. I am a bit anti using another broker as they charged a lot and the information we provided them was what made up 99% of their business plan proposal which landed us our deal. However if brokers are the only option so be it! I dgress

We are currently umming and ahhing about our next step. We've seen a formerly large house which was divvied up in the 60's into holiday flats. Our plan would be to live in the largest flat (which backs onto the garden, and has it's own entrance), and rent out the other units as holiday flats. We have viewed it a couple of times and like what we've seen, done some sums based on our experience in the same town in the same industry, chatted to some friends with holiday lets etc and know we can make it work, however, our first port of call was our current lenders have said no!

ETA the flat we'd use would make up approximately 30-40% of the property if that makes any odds?

So, being bloody minded, bull headed and not admitting defeat I'm looking into other lenders. I assume I could go either way with full commercial lender (like we have now) or a mixed/part residential-part commercial mortgage, is there any plus or minus points to each?

Thanks in advance

Edited by ADogg on Friday 1st December 18:28

[Jockman]

I get where you're coming from. I'm in the process of acquiring a few companies and I swear that in meetings with the vendors and various lenders that my thoughts and spreadsheets are the backbone of all proposals !!

I could see this as laziness on behalf of those doing my financial DD and my legal DD. Or I could see it as those advisers encompassing my views and using them as the bedrock of the proposal. Years ago I would have thought the former. Now I focus in on the critical paths.

If a broker is going to add value then use them. If a broker is going to expedite the deal in a timely manner then use them. If a broker is going to open doors that are currently not open to you then use them.

Either way, best wishes in your endeavours.

[ADogg]

Thanks for your input, I think you’re right! I’m going to do what I can first and see where that gets me, then look into Brokers if that fails.