Financing owner-occupied and investment properties
As a business owner, your commercial property is more than just a building; it’s a vital asset that supports your operations and growth.
That’s why securing the right commercial mortgage is essential for your success.
Our experienced team understands the unique financial needs of businesses and investors, offering expert advice and tailored solutions to help you through the complexities of commercial property finance.
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Commercial mortgages
Owner-Occupier Commercial Mortgages
An owner-occupier commercial mortgage allows you to purchase the property your business operates from, providing stability and the opportunity to build equity.
These mortgages typically span 5 to 30 years, with loan-to-value ratios reaching up to 75%.
explore Owner-Occupier Commercial Mortgages
Key Features:
Flexible Interest Rates
Choose from variable or fixed interest rate deals.
Higher Interest Rates
Commercial mortgages do have higher interest rates than standard residential mortgages.
Favourable Compared to Business Loans
Compared to unsecured business loans, commercial mortgages tend to offer more attractive interest rates due to the property serving as collateral.
Tax Deductible Interest
The interest paid on your commercial mortgage can be deducted from your business’s taxable income, reducing your overall tax burden.
Potential Capital Appreciation
If the value of your commercial property increases, you’ll benefit from capital appreciation, enhancing your overall financial position.
Rental Income Potential
Depending on the property and zoning regulations, you may have the opportunity to rent out portions of the space, generating additional income for your business.
Commercial Mortgages
Investment mortgages
A commercial investment mortgage is designed for those looking to purchase or refinance a commercial or semi-commercial property that generates income through tenant rentals.
This type of mortgage allows you to expand your property portfolio and benefit from potential rental yields and capital appreciation.
Terms of 5-30 years and up to 80% LTV.
explore Commercial Investment Mortgages
Key Features:
Rates and Fees
The rates and fees associated with investment commercial mortgages are typically slightly higher than those for owner-occupied properties, reflecting the increased risk for lenders.
Interest Rates
Fixed, variable interest and interest-only options are normally available, offering flexibility to suit your financial strategy.
Passive Income Generation
Rental income from commercial properties can provide a steady stream of passive income.
Capital Appreciation Potential
As the value of your commercial property increases over time, you can benefit from capital appreciation, enhancing your investment returns.
Portfolio Diversification
Investing in commercial property can diversify your investment portfolio, spreading risk and potentially increasing overall returns.
Who can borrow?
Applications can be made by:
- Individuals
- Partnerships
- Limited companies
- SPV
It’s common for investors to borrow through an SPV (Special Purpose Vehicle). An SPV is usually a limited company and is set up just for that project and for that loan.
Using an SPV does not negate the need for personal guarantees from the directors/shareholders of the SPV.
Commercial bridging loans
Often there is a need to move quickly with commercial property purchases. So what happens if your commercial mortgage is still being assessed but your keen to move on?
Maybe a commercial bridge loan can help.
Like standard bridging loans, they offer flexible finance and fast decisions. You could potentially use the commercial bridge to complete on the purchase and then repay it once the main loan has been formally approved.
learn moreCommercial VAT bridging loans
When you buy a commercial property it is common for VAT at the standard rate to be added to the purchase price.
This extra sum won’t be covered by your commercial mortgage so you need to find the cash to pay it until the VAT element is refunded back to you.
With a VAT bridging loan 100% of the VAT is funded, removing the cash flow pressure on your business.
learn moreCommercial Development Finance
Commercial mortgages are used to purchase existing buildings or land.
If you intend on buying a property to then re-develop it for commercial use you will initially need Commercial Development Finance. This can help to fund both the purchase cost and the development costs.
Or, you can use ground up development finance to initially fund the land purchase and the build before moving to a long-term mortgage.
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