Looking to purchase a commercial property or expand your portfolio? Here you’ll find more information and how we can help you.
Finding the perfect space for your business is a strategic move that can significantly impact your success. Our Owner Occupier Commercial Mortgages service is designed to empower business owners like you to secure properties for your company’s use. Whether you’re looking to purchase, refinance, or expand your existing premises, our expertise ensures you have the financing you need to create a foundation for long-term growth.
Our specialist knowledge allows us to support you with sourcing commercial mortgages, helping you secure the right funding to grow a successful property portfolio.
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Your Path to Successful Commercial Investment
Investing in commercial properties can diversify your portfolio and create a steady stream of income. Our Commercial Investment Mortgages service is designed to cater for entrepreneurs who want to capitalise on the opportunities that commercial property offers. With our expertise, you can access the financing you need to acquire, develop, or refinance properties that generate impressive returns on your investment.
The minimum trading history required to qualify for an owner occupied commercial mortgage can vary among lenders. Generally, lenders prefer to work with businesses that have a proven track record of financial stability. While some lenders might require a trading history of at least two to three years, others might consider businesses that have been operating for a shorter period.
Factors that influence the required trading history for a commercial mortgage include –
Lender Policies: Different lenders have varying criteria for assessing a business’s trading history. Some might be more flexible, especially if the business demonstrates strong financials and potential for growth.
Industry and Business Type: The type of industry your business operates in might impact the lender’s comfort level with a shorter trading history. Established industries might have more flexible options.
Business Performance: If your business has shown consistent revenue and profitability in a shorter time, it could be viewed favourably by certain lenders.
Financial Stability: Lenders assess your business’s financial stability, including factors like cash flow, income statements, and business projections, to determine whether you qualify for a commercial mortgage.
Security Offered: Providing additional security, such as a deposit or personal guarantee, might mitigate the lender’s concerns about a shorter trading history.
Loan Amount and Purpose: The loan amount and purpose (property purchase, refinance, etc.) can also influence the lender’s decision on trading history requirements.
It’s important to note that while some lenders might be willing to work with businesses with shorter trading histories, having a longer trading history can generally improve your chances of qualifying for a commercial mortgage. Consulting with mortgage advisors who specialise in commercial financing can help you navigate lender requirements and find suitable options based on your business’s unique situation.
Yes, it’s common for the interest rates on commercial mortgages to be higher compared to residential mortgages. There are several reasons for this difference in interest rates:
Higher Risk: Commercial properties are often considered riskier investments for lenders compared to buy to let properties. Businesses may face economic challenges, changing market conditions, and potential cash flow fluctuations, all of which can impact their ability to repay the loan.
Complex Underwriting: Underwriting commercial mortgages involves more complex assessments of factors like the business’s financials, industry stability, property type, and potential rental income. This complexity contributes to increased risk for lenders.
Loan Terms: Commercial mortgage loan terms are often shorter than buy to let terms.
Lender Policies: Lenders might perceive commercial mortgages as higher maintenance due to the need for ongoing property management, potential lease negotiations, and business-related considerations. These additional complexities can lead to slightly higher rates.
Economic Factors: Economic conditions and market trends can also influence interest rates. If the economy is volatile or if market conditions are uncertain, lenders might adjust rates to reflect the increased risk.
Despite the higher interest rates, many businesses find the benefits of commercial properties—such as potential rental income and property appreciation—outweigh the associated costs. It’s important to carefully assess the financial viability of your commercial investment, including evaluating potential income and expenses, to determine if the higher rates are justified by the potential returns. Consulting with mortgage advisors who specialise in commercial property can help you make informed decisions regarding financing.
A commercial mortgage can be used to purchase a variety of properties that are intended for business or investment purposes. These properties go beyond residential homes and cater to the needs of businesses and investors. Here are some types of properties that can be purchased using a commercial mortgage:
Office Buildings: Properties used for office spaces, whether for a single business or multiple tenants, can be financed with a commercial mortgage.
Retail Spaces: Commercial mortgages can help finance properties such as storefronts, shopping centres and retail spaces.
Industrial Properties: Warehouses, manufacturing facilities, distribution centres, and other industrial properties can be purchased with a commercial mortgage.
Hotels and Hospitality: Hotels and other hospitality properties can be financed through commercial mortgages, as they generate revenue through guest stays.
Mixed-Use Properties: Properties that combine commercial and residential elements, such as a building with both retail spaces and apartments, this will be treated as a semi-commercial property.
Healthcare Facilities: Properties used for healthcare services, such as medical offices, clinics, and assisted living facilities, can be purchased with commercial mortgages.
Educational Facilities: Buildings used for educational purposes, such as schools, training centres, and universities, can be financed through commercial mortgages.
Leisure and Entertainment: Properties used for leisure and entertainment purposes, such as theatres, cinemas, sports facilities, and recreational centres, can be financed using commercial mortgages.
It’s important to note that the eligibility criteria, loan terms, and interest rates for commercial mortgages can vary based on the type of property, its intended use, the borrower’s financial profile, and market conditions. Consulting with mortgage advisors specialising in commercial mortgages can help you navigate the options available and determine the best financing solution for your specific property investment.
A variety of individuals and entities can apply for a commercial mortgage to finance properties intended for business or investment purposes. Here are some of the potential applicants for a commercial mortgage:
Business Owners: Owners of established businesses who want to purchase property for their company’s operations, such as office spaces or industrial facilities.
Entrepreneurs: Individuals looking to start a new business and need commercial property for their venture.
Investors: Individuals or groups interested in purchasing commercial properties as an investment to generate rental income or capital appreciation.
Partnerships: Groups of individuals or businesses that come together to collectively purchase and manage commercial properties.
Limited Liability Companies (LLCs): LLCs formed for business or investment purposes can apply for a commercial mortgage to finance properties.
Corporations: Corporations seeking to acquire or refinance commercial properties for their operations, expansion, or investment purposes.
Developers: Property developers interested in purchasing land or existing properties for development projects can use commercial mortgages.
Non-Profit Organisations: Non-profit organisations that require commercial properties for their activities, such as community centres or offices.
Property Managers: Individuals or entities involved in property management who want to invest in commercial properties.
It’s important to note that eligibility criteria and requirements for commercial mortgages can vary among lenders. Lenders will typically assess factors such as the applicant’s creditworthiness, business financials, trading history, the property’s intended use, and potential income. Consulting with mortgage advisors specialising in commercial mortgages can provide you with specific information about the application process and requirements based on your unique circumstances and investment goals.
Don’t let financing obstacles hinder your business aspirations. Contact us today to explore our Owner Occupier and Investment Commercial Mortgages.
Our experts are ready to collaborate with you, offering tailored solutions that empower you to secure properties, expand your ventures, and unlock the full potential of commercial property.
Securing favourable rates and terms is crucial to the success of your commercial ventures. We enjoy a great relationship with an extensive network of commercial lenders and will negotiate on your behalf to secure the most competitive interest rates and flexible repayment options.
What makes us Specialist Property Finance Advisers
Secure a mortgage deal today and we'll keep watch on your lender's rates. If a better, suitable deal becomes available, we'll let you know and help you switch.
We have amassed many positive reviews on Google and glowing testimonials from our clients over the years which we are very proud of.
We have excellent relationships with all of our banks and lenders. We're often asked for our opinions on the property market and current mortgage products.
We know that the mortgage market can move quickly, so it can be frustrating to see your lender release a better deal than your current one.
The Keys Mortgages Rate Watch Guarantee is designed to give you peace of mind, knowing you always have the best deal and protect you against missing opportunities of lower rates.
We guarantee to keep watch on your chosen lender’s rates and if a better deal becomes available, we’ll let you know and ask the lender to change product without having to start over (lender restrictions may apply). This is free and included as part of our service.
“I’ve had the privilege of working closely with Cheryl Williams and Amy Zakary over an extensive period, both in my professional role at Precise Mortgages as Sales Director and as a landlord with 32-years experience. In the realms of buy-to-let mortgages locating a broker with genuine specialisation is no small feat.
My confidence in Keys Mortgages is unswerving. Drawing from my experience conducting training at Precise Mortgages, I can vouch for Cheryl and Amy’s exceptional knowledge. Their commitment to delivering a quality service, fused with unwavering expertise, forms the bedrock of their five-star service proposition.”
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A mortgage is a loan used to purchase a home. The property you’re buying serves as security for the loan. You make regular payments, which include both principal (the loan amount) and interest, over a specified period. As you make payments, you gradually own more of the property.
There are various mortgage types, including fixed-rate mortgages (interest remains constant), variable-rate mortgages (interest fluctuates), tracker mortgages (linked to the Bank of England base rate), and more. Your mortgage broker can help you find the right option based on your financial situation and preferences.
The amount you can borrow depends on factors like your income, credit history, expenses, and the lender’s criteria. Lenders typically use a multiple of your income or affordability calculations to determine the maximum loan amount.
An agreement in principle (AIP) is a preliminary indication from a lender that you’re eligible for a mortgage up to a certain amount. It’s not a guarantee but can help you understand your budget. A formal mortgage offer is a commitment from the lender to provide the specified amount at agreed-upon terms after a thorough verification process.
Aside from the property’s price, you’ll need to budget for additional costs like arrangement fees, valuation fees, legal fees, stamp duty (if applicable) and potentially broker fees. Your mortgage broker can provide a breakdown of these costs.
A mortgage broker acts as an intermediary between you and potential lenders. They analyse your financial situation, help you find suitable mortgage options, and guide you through the application process. Their expertise can save you time, ensure you’re aware of available options, and increase your chances of securing a favourable mortgage deal.
Send us your enquiry today and one of our friendly advisers will call you back for a free consultation at a time that suits you. Hassle-free with no obligations.
