Mortgages for Owner Occupation

There comes a time in any growing business buying a new premises or upgrading to a larger one becomes a necessity. When that time comes, Crystal Clear Commercial Mortgages can be a powerful ally.

From first steps in business to multi-million pound city centre property, our consultant team have experience in a wide variety of client needs across all industry sectors and have experience in dealing with all types of property from small neighbourhood shops to large-scale industrial units.

All business mortgages (owner-occupier mortgages) are different and totally bespoke. Rates, terms and decisions are based on numerous factors and are consequently far more complex than a residential mortgage. There is also a huge range of products out there – that’s why engaging the services of someone who really understands the market can save you a great deal of time and money.

One of the key factors in your mortgage decision will be the strength of your business proposition. Frequently, especially in the case of new businesses or small businesses buying their first premises, expectations can be unrealistic or the proposition represented badly. A good mortgage broker like Crystal Clear Commercial Mortgages can advise you what to expect from your application and find you the most appropriate mortgage package on the market.

We are specialists in finding commercial mortgages

for those with missed mortgage payments for those with ccj's/defaults/discharged bankruptcy for those who have experienced repossession of their home for those who are self employed with limited/no accounts

Commercial owner-occupier or business mortgages are aimed at investors who want to buy a property as premises for their own business.

Rates of business mortgages are bespoke and will depend on the lender’s assessment of the business proposition. In general the market is more complex than the residential market and tends to lack the competitive rates of the residential market.

Various factors affect rates and lending decisions including audited accounts showing consistent profits and a well-structured business plan, as well as the general performance of the particular industry sector.

In general start ups or businesses without complete audited accounts rates will be much higher than a blue chip company with a long track record and proven profitability. In addition, if a bank has lent heavily to a particular type of industry then their rates may be higher than elsewhere as they will wish to avoid over exposure in that industry sector.

Finally, the quality of the property will affect your funding. Better quality assets attract preferential rates while businesses such as nightclubs, nursing homes and petrol stations may be more difficult to fund.

Because of the complexities involved, particularly the fact that every commercial mortgage is different, a good broker can be worth their weight in gold. Not only is their role to negotiate the best rates and terms for you but they will also advise you, based on their market knowledge, as to what is realistically attainable in your particular situation.

All commercial owner-occupier mortgages are all priced above Bank of England Base Rate or LIBOR (London Interbank Offer Rate). The maximum loan value is usually 85% loan to property value; most borrowers should expect a more realistic maximum of between 70% to 80%. Most lenders apply a maximum borrowing of 25 years, although this may be extended to 30 years in some cases.

Find out more about growing your business – call one of our qualified advisors now on 0800 881 8834