Commercial Investment Mortgages
What is a Commercial Investment Mortgage?
A type of loan used to purchase or refinance a commercial property that will be let to tenants for profit.
Why Choose a Commercial Investment Mortgage?
Commercial investment mortgages help business owners to secure the funds they need to buy property or land for their business.
How Commercial Investment Mortgages Work
A commercial investment mortgage considers rental income potential, loan to value ratio and tenant quality.
Commercial Investment Mortgages at a Glance
Eligibility:
Individuals or businesses including trading businesses or commercial buy to let (also known as an investment property)
LTV:
Up to 75%
Loan Amounts:
From £50,000 +
Interest Rates:
From 3% per year
Repayment Types:
Capital repayment and Interest Only options
Terms:
5 – 25 years.
Repayment terms:
Monthly repayments. Capital or interest only options.
Acceptable Security:
Any commercial or semi-commercial property considered.
Investing in commercial property can be a rewarding venture, offering the potential for strong returns and reliable rental income. Whether you’re expanding an existing portfolio or entering the market for the first time, securing the right commercial investment mortgage is essential. At Elite Business Funding, we specialise in helping property investors secure competitive mortgages tailored to their financial goals. Our experienced team works closely with a wide range of lenders across the UK, ensuring you have access to the best terms available.
What is a Commercial Investment Mortgage?
A commercial investment mortgage is a type of loan used to purchase or refinance a commercial property that will be let to tenants for profit. Unlike owner-occupied commercial mortgages, where the business operates from the premises, investment mortgages are designed for landlords who rent out the property to third parties. These properties can include office buildings, retail units, industrial spaces, or mixed-use developments.
The criteria and structure of a commercial property investment mortgage can differ significantly from residential or buy-to-let mortgages. That’s why working with a specialist broker like Elite Business Funding is essential to ensure the mortgage aligns with your needs and goals.
How Do Commercial Investment Mortgages Work?
A commercial investment property mortgage is assessed on a number of factors, primarily focusing on the income potential of the property and the financial position of the borrower. Unlike residential mortgages that focus on personal income, lenders for commercial mortgage investments consider:
- Rental Income Potential. The expected rental income is a major factor. Lenders will want to see that the income comfortably covers the mortgage repayments.
- Loan-to-Value (LTV) Ratio. Normally, the maximum LTV is between 60% and 75%, meaning a deposit of between 25% and 40% is usually required.
- Tenant Quality and Lease Terms. Long-term leases with reputable tenants are viewed favourably by lenders, as they provide greater stability and lower risk.
- Borrower Profile. Lenders will review the borrower’s experience in commercial property investment, credit history, and overall financial health to assess their ability to manage the loan responsibly.
- Property Type and Location. Lenders assess the commercial viability and demand for the type of property in its specific location.
Most commercial investment mortgages are available on a capital repayment or interest-only basis, with loan terms usually ranging from five to 25 years. Interest rates can be fixed or variable and are typically higher than those for residential or buy-to-let loans due to the increased risk.
Contact Us Today
At Elite Business Funding, we can help to ensure your mortgage is structured to maximise return whilst aligning with your broader investment strategy. We’ll manage the full process, from your initial application to negotiating with lenders to secure the best terms possible. Our team will guide you through every step, ensuring the process is smooth and stress-free from start to finish. Fill out the form below for a no-obligation consultation and take the next step in your commercial mortgage investment journey.
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