Specialist lenders vs mainstream lenders for commercial mortgages

Whether you are looking for an commercial owner-occupier mortgage or a commercial investment mortgage, knowing which lender to approach can be tricky. That’s where we come in... Gareth Richards, consultant mortgage broker gives you an insight into his decision-making process.

To help demonstrate my decision-making process I have created a matrix, which details the average requirements for both the specialist and mainstream lenders. Please bear in mind that this matrix should be used as a guide only, as of course the individual lenders under each category have different requirements and specialities.

Generally speaking, the guide can be applied across all industry sectors (retail, leisure, office, healthcare, education, trades, industry, manufacturing, etc.)

Commercial owner-occupier mortgage

Specialist lender

Mainstream lender

  • Borrow up to 14 times the adjusted profits
  • Rates from 3.54% over LIBOR
  • Interest only up to 10 years
  • Capital & repayment up to 25 years
  • Evidence of 2 years’ experience

 

 

  • Borrow up to 8 times the adjusted profits
  • Rates from 2.85% over Bank Rate
  • Capital & repayment up to 25 years
  • Part interest only available on a case by case basis
  • First-time owner-occupiers accepted

 

Commercial investment mortgage

Specialist lender

Mainstream lender

  • Borrow up to 75% loan to value
  • Rates from 3.54% over LIBOR
  • Interest only up to 10 years
  • Capital & repayment up to 25 years
  • First time commercial investors accepted dependent on strength of applicant

 

  • Borrow up to 50% loan to value
  • Rates from 2.50% over Bank Rate
  • Capital & repayment up to 25 years
  • Part interest only available on a case by case basis
  • First time commercial investors accepted dependent on strength of applicant

 


Want to know where your finance requirements would fit? Or just want more of a breakdown of different lender requirements?

Call me today on 01732 471627 or email garethr@mortgagesforbusiness.co.uk

Alternatively call the main line 0345 345 6788 and ask for the commercial desk.

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