A loan which allows a business to purchase premises from which the business will trade. Many businesses will start their trading life by renting premises but by purchasing their property will see the rent replaced by loan repayments, with the potential to see an increasing value of the property should the market continue to see the increasing trends of recent years
Lenders are attracted to this type of business and the lender market offers some of the lowest rates in the Secured Lending market. Subject to lenders undertaking their own due diligence finance can be provided to Limited Companies, Partnerships, Individual names and some types of Pension structures
The loan to value and repayment period available does differ amongst lenders depending on the lenders general market appetite and the sector in which your business operates. A deposit will be required, typically 25% to 30% although there are lenders who will selectively offer slightly higher terms. An Owner Occupier Commercial Mortgage will usually be on a Capital & Interest Repayment basis on terms of up to 25 years. Lenders will, on occasions, allow a capital holiday for up to 12 months, particularly where the client may have additional costs relating the relocation of their business in the first year.
We have an extensive panel of lenders including High Street and Challenger Bank and understand the calculations these lenders will make when assessing your application.
As such we are well placed to find the right lender for your business, our experienced team have worked for many years in the financial sector and work closely with our panel to understand their changing market.