Commercial Mortgages for Property Owners & Owner-Occupiers
Flexible Criteria & Competitive Interest Rates
Mortgages for Commercial Property Investors
Whether for a property purchase, or to re-financing an existing commercial mortgage, we can arrange commercial lending on a wide range of properties, such as:
- Retail units with or without living accommodation
- industrial units
- warehousing & storage facilities
- complex HMOs
- purpose built student accommodation
- blocks of flats.
Commercial Owner Occupied Business Mortgages
Properties that contain both residential living accommodation and an element of commercial or business usage are classed as semi-commercial. We can arrange mortgages for semi-commercial property
We can arrange commercial mortgages for Care Homes and Nursing Homes. If you need to remortgage to raise capital for refurbishment or expansion, or you are purchasing an existing business we can assist with a wide range of mortgage options.
G.P. Surgeries, Dental Practices, Private Health Clinics, Veterinary Practices & Accountancy firms, Mortgages are available up to 80% of market value where applicants have suitable experience in the relevant sector.
If you have experienced financial difficulties in the past and incurred adverse markers on your credit report, you might not fit borrower requirements for the high street banks and other commercial lenders. However, we can assist with arranging a commercial mortgage from a lender within our panel of specialised lenders.
Properties including Factories, Warehousing, Automotive Workshops, Garages, Industrial Units & Business Parks Whether for owner occupation or for investment purposes, we can arrange a suitable commercial mortgage.
Commercial mortgages for Pubs, Bars, Restaurants and Licensed Premises, plus Hotels and Holiday Parks. We can assist with financing the purchase of trade premises and re-structuring existing finance arrangements as well as capital raising to fund renovations.
Available for both existing businesses and new ventures starting up looking to acquire retail premises, commercial lenders can offer competitive rates for acquisition or refinance of retail property.
Where lending falls outside of traditional buy to let we can still assist. Commercial funding is available for residential investment and investment portfolios in the private rented sector let either as a corporate contract, or on an Assured Shorthold Tenancy.
While large HMO and purpose built student accommodation may fall outside the lending criteria of mainstream buy to let, commercial lenders do show an appetite to lend on this class of asset for experienced private and corporate investors.
Mortgages for Semi-Commercial Property
Properties that contain both residential living accommodation and an element of commercial or business usage are classed as semi-commercial.
Semi-commercial can also be for investment purposes or for owner occupation. An example owner occupied semi-commercial would be a Bed & Breakfast or small hotel where the property owners both reside at and conduct business from the address.
A retail shop with a residential flat above with both units rented out would, on the other hand, be classed as investment semi-commercial.
What can be Offered as Security for the Commercial Mortgage?
When purchasing a commercial property the mortgage is secured against the property being purchased by first legal charge.
Loan to value ratio’s (LTV) of commercial borrowing will vary on property type and business sector though generally LTV’s are in the region of 55% to 80% with the balance being provided for by cash deposit or through offering additional security in other property that you hold sufficient equity.
Where additional security can be offered it is therefore possible to attain the equivalent of 100% LTV or loan-to-purchase.
Types of Commercial Mortgage
A commercial mortgage is a loan secured on a commercial or business property, which is not the applicants main residence.
Office buildings, industrial warehousing and retail shop units are common examples of commercial property.
Commercial mortgages are designed either for investment purposes, where the property is let to a tenant and producing rental income, or where the property is to be used for the owners place of business as a owner occupied property.
What Commercial Lenders Look For
Unlike residential buy to let products, commercial mortgages are priced on individual merits and on a case by case basis, often with many variable factors affecting lending risk. Therefore it is not possible to produce tables of best-buy interest rates.
As a commercial mortgage broker, we work with our clients to position their requirements in the best way possible before approaching our panel of commercial lenders. Commercial lenders will assess a case on a number of critical factors. The most important being the type and condition of property, the strength of the business behind the application, and the size of loan relative to the property value. For investment mortgages, the rent being generated by the property and the type of tenant renting the property are also crucial.
Commercial Lending on Property in the Residential Sector
Commercial lending also extends property used for residential use, such as apartment blocks and other housing under the C3 planning use
Regulated Commercial Mortgage Contracts
Commercial mortgages are not regulated by the Financial Conduct Authority (FCA). However, in properties where 40% or more of the property (by total area) is used exclusively as the borrower’s main residence, the mortgage contract must then be regulated by the FCA.
Because of this, the vast majority of commercial lenders do not lend on property with owners living accommodation forming more than 40% of the floor area.
Many smaller B&B’s and guesthouses will fall under this regulation, likewise Cattery and Kennels businesses with a main residence house, plus outbuildings for business use will also require an FCA regulated mortgage contract.