Commercial Owner Occupied Mortgages

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Commercial owner-occupier mortgages (also known as Business mortgages) are designed for individuals and companies purchasing or remortgage a property to be used as a business premises. With rental prices high and rising, purchasing a commercial premises to run your own business can be more cost effective. Our solutions for Business mortgages cover all types of commercial property from whether you are looking to purchase new office space or release equity from an industrial unit or factory.
The package offered by the lender is subject to the status, the type of trade, and the performance of the business.
The commercial mortgage loan to value will usually be based against the bricks and mortar value of the property, however, in some instances, the lenders will base the loan to value against the full business appraisal (which would include the goodwill of the business).
Some benefits of Commercial Owner-Occupied:

  • Owner-Occupied Commercial Mortgages are looked at more favourably than investment mortgages, as the lenders feel there is less risk.

  • The lenders will look to offer a standard loan to the value of around 70-75%, with the exception of one particular high-street bank who can look at 80% LTV on an owner-occupied commercial mortgage, but this is trade dependent.

  • Can be arranged on a capital repayment, or interest only basis and are secured by way of first legal charge over a property. In some instances, they can be secured over more than one property.

We can arrange Commercial mortgages for most types of business premises, and also arrange funding on niche propositions including hotels and guest houses, health clubs, pubs and restaurants, schools and care homes. Typically we arrange commercial owner occupier mortgages from £50,000 to £25m. Do give us a call to talk through the borrowing requirements for your business.