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Scottish Building Society offers mortgages for people looking to buy or remortgage a Guest House or Bed and Breakfast in Scotland.

Key Features

Suitable for:

People looking to buy or remortgage a Guest House with up to 6 letting bedrooms, and a maximum of 9 bedrooms overall.


Mortgages are available for Guest Houses which are to be occupied by the borrower and with a maximum of 6 letting bedrooms, and a maximum of 9 bedrooms overall.

All mortgages are subject to a suitable property valuation. For property purchases in Scotland, we can normally use the property valuation contained in the sellers’ Home Report as long as it is no more than 3 months old.

Maximum/ Minimum Loan:

We will lend up to a maximum of 75% of the property value or purchase price (whichever is lower). For remortgages, the minimum loan size is £30,000. Maximum loan size - £350,000.

Minimum Loan:

Minimum loan on a single property is £50,000.


Applicants must be at least 18 years old on application and a maximum age at the end of the mortgage term is normally 70.

Minimum mortgage term is 5 years and maximum term is 35 years.

How much can I borrow?

All applications are dealt with on an individual basis with the amount of the mortgage dependent upon the circumstances of the applicant. The following information will be required to assess any application:

  • When the borrower is buying or remortgaging an existing Guest House we will require 3 years trading accounts for the business.
  • If starting a new business, or believe an existing business has scope for increased trading, then we will require a cash flow forecast and business plan to support this.
  • Details of the applicants’ previous business experience if any.
  • Details of any continuing employment or income that the borrower has, in addition to the Guest House business.

Any existing financial commitments will also be taken into consideration when affordability is calculated. Note: The Society will not consider debt consolidation for Guest House remortgages.

Remortgage Incentives:

Free Basic Legal Service: When remortgaging a Guest House property to Scottish Building Society we will provide the borrower with a free basic legal service which means they won’t have any solicitor’s fees to pay. However, the solicitors we use will act only for the Society in the transfer of the mortgage and if the borrowers require any additional services these will require to be paid by the borrower.

If they would prefer to use their own solicitors then the Society will contribute £150 towards the cost of this.

Refund of Valuation Costs: A valuation of the property will be required as part of the mortgage application. The cost of this will be met by the Society in line with our scale of fees. Any other valuation requirements should be discussed with the valuer direct and the customer will have to meet the additional cost.

Note – this package is not available to customers who are unencumbered and looking to raise money.


  • Capital and Interest OR
  • Interest Only. Repayment of the mortgage can be by sale of the Guest House business.


A first charge will be taken over the property being purchased or remortgaged as security for the mortgage lending.

Flexible Features:

Overpayments of up to 10% of the mortgage advance can be made per annum. An early repayment charge, equivalent to 3% of the total amount overpaid, will apply if overpayments exceed 10% of the loan amount in any 12 month rolling period during the first 3 years of the mortgage.


Buildings Insurance must be arranged prior to funds being released.


New Saver Enquiries

0345 600 0585

New Mortgage Enquiries

0345 600 4085

Lines open 9-5 Mon to Fri (10-5 Wed). Calls may be recorded and/or monitored.

Existing Member Enquiries

To talk to us about an existing savings or mortgage account, contact your local office

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