Commercial Finance Types


Commercial Finance Lenders tend not to deal in all areas of the market but instead individual lenders usually specialise in specific sectors, locations or situations i.e.

Certain lenders deal solely in care homes whereas others may deal solely in pubs. Certain lenders deal solely in London and the South East whereas other lenders deal in England as a whole. Other lenders deal in England and Wales but not Scotland whereas other lenders deal within the whole of the British Isles. Certain lenders will only lend on owner occupied properties whereas others require the property to be empty.

The list goes on and the diverse nature of the situations and circumstances to which lenders will or will not lend requires an industry specialist such as UK Property Finance to navigate. Only companies such as ourselves who focus solely on this continuously evolving area of the finance market would be able to provide a near instant YES of NO answer on the possibility of funding. UK Property Finance are a whole of market master broker and make it our personal mission to be aware of what finance is available and to be able to provide quick quality answers to our clients.

The table below details some of the examples of the current commercial property finance types and scenarios that lenders accept or do not accept as security for a commercial mortgage. The data is taken from a cross section of 50 lenders.

 

Commercial Business TypeNumber of Lenders that DO accept business type as securityNumber of Lenders that DO NOT accept business type as security
Care Homes446
Schools / Nurseries446
Owner occupied2030
Hotels2228
Going Concerns1535
Public houses1832
Land347
Mixed use455
House of Multiple Occupancy455
Investment482
Residential Commercial428
Commercial Usage of 20%428
Live / Work Units3911
Farms248
Equestrian Centres347
Agricultural Ties1139
Industrial Units3218
Flying Freehold3416
Buy to Let455
Chemical Works149
Contaminated Properties248
Religious Buildings347
Buildings used by Charities941
Petrol Stations842
Charity homes842

Pricing models can be complex and our lenders will consider a number of factors such as the security available, financial accounts, client experience and credit history before making a formal offer.

This list is not prescriptive and as a whole of market broker we are more than happy to discuss your business financial needs and guide you through to arrange and complete on a financial solution.

Owner Occupied or Investors

Our clients are a mix of owner-occupiers and investors. As an independent broker and commercial finance consultancy, we can provide access to variety of mortgages and lenders from our extensive partner panel. Additionally, we will tailor where possible all of our mortgage deals to fit our clients’ needs including:

  • Repayment and Interest-only payment types
  • Short and long-term repayment programmes
  • Fixed and variable rates
  • Arrangement fees added to the loan or paid on application
  • Higher LTV funding available when additional security is provided
  • Refinance, purchase or additional borrowing

Unlike residential mortgages, commercial loans cannot be easily sourced but can be used for a variety of purposes, including purchasing additional business premises, expanding your business, debt consolidation, cash flow issues and property development.

Last Updated: Feb 28, 2017 @ 2:58 pm
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UK Property Finance is Authorised by The Financial Conduct Authority (FCA)

Association of Bridging Professionals
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