COMMERCIAL MORTGAGE FOR OWNER OCCUPIERS
If you are an owner occupier and need help with a purchase or remortgage we can help you. We have access to exclusive rates and lenders so please complete our enquiry form.
It’s not just about the initial rate of the Commercial Mortgage and whilst this is important there are many other factors for you to consider.
POINTS TO CONSIDER WHEN COMPARING COMMERCIAL MORTGAGES
- Market Rent confirmed by lender’s valuer;
- Profitability trends if owner occupier;
- Age and condition of property;
- Time to re let the property;
- Time to sell the property;
- Economic life of the property;
- Any hazardous materials kept or asbestos within the building as this may affect value;
- Prices of other units in the area which are similar and have sold or been rented out;
- Will the lender want personal guarantees;
- Interest only loans-how will it be repaid.
- Three year’s accounts;
- Management figures to date if produced;
- 3-6 months business bank statements;
- Asset & Liability Profile for directors;
- Income & Expenditure Profile for directors.
- Commercial mortgages are available on full repayment, partial repayment and interest only (but these are at a higher rate);
- Loan terms vary 3-30 years;
- Available to individuals, partnerships, LLPs and limited companies;
- Lenders look at your adjusted profitability figure. This is profit before rent (if you are looking to buy) interest, tax, depreciation and amortised goodwill less dividends paid out;
- Minimum property valuation £100,000;
- LTV up to 75%, but typically 65-70%.