Buyers should take pubs now as banks are open to lending

Environment is right for banks to lend to businesses

First-time freehold purchasers looking to buy their own pub should start looking now, according to a financial adviser.

Patrick Ryan, managing director of business mortgage specialists Christie First, said banks are as keen as ever to lend to new businesses because the environment is right.

He said information from sister company Christie & Co suggests the number of pub instructions being handled has remained steady, despite the events of September 11.

Evidence shows there is currently no shortage of businesses available on the market and plenty of buyers eager to view them.

For many people the fact that the financial barriers to owning a pub are low is further encouragement to setting up their own business.

"It is important that potential buyers are confident that once they have found an ideal property, they are able to secure the funding," said Mr Ryan.

"In our daily dealings with banks and lenders we have seen no indication that banks are tightening their lending requirements or are less eager to lend than they were earlier in the year."

He pointed out that interest rates, which were recently cut to a low of four per cent base rate, are a key factor for buyers.

Inflation is showing signs of remaining low and while consumer spending briefly dropped off after the terrorist attacks, it has remained buoyant and is credited with holding up the British economy.

Although the falling number of American visitors to Britain since the foot-and-mouth epidemic and the terrorist attacks is a problem, Mr Ryan said he was confident the situation would balance out.

"We expect to see a rise in European tourists and more Britons opting to holiday at home in 2002," he said.

For more information on buying a business contact Christie First on 020 7535 5000 or visit www.christiefirst.com.

Considerations when buying a pub​

• The availability of suitable properties to buy
• Whether banks and lenders are happy to fund loans to facilitate the purchase and whether loans can be secured at fixed rates which are affordable over the next three to five years
• Whether the economic environment is sound
• The current trading environment for pubs