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Commercial Mortgages

Initial Considerations

​Commercial Finance is rather different to traditional mortgage lending, the property itself and what it is used for is a significant factor in the finance options available to you.  At Balanced we are passionate about your mortgage being categorised correctly so you don't pay more than you need to, so we will discuss your property and its uses and see if it really does require a commercial mortgage.   See below:

Commercial Mortgage

Commercial Mortgages take many forms including:

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  • Offices/Office complexes

  • Retail/Shops

  • Dentists/Surgeries

  • Factories / Warehousing

  • Industrial units

  • Professional Practices

  • Mixed Use properties

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Large Residential Let portfolio

Sometimes we are asked for a commercial mortgage for a large portfolio landlord (whether personally owned or Ltd Company) due to the size of the portfolio, or because the applicant is looking for one loan across several properties.

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We can assist with this with access to lenders who will lend on a commercial basis, but also lenders who do not class the above scenario as Commercial, enabling our client to access cheaper and less restrictive deals.

MUFB & Large HMO's

As with Larger portfolio landlords, we are often asked for a commercial mortgage to finance a large HMO.  Again, we have access to lenders who will offer a commercial mortgage for this type of borrowing even for Large HMO's / MUFB's, but we will look to specialist Buy to Let lenders who will consider these deals too, then we will talk to you above the most cost-effective way forward.   ​

How categorisation will affect lending options

 

Unfortunately, we have seen landlords of residential let properties pay much more than they needed to because they believed they needed a commercial mortgage to meet their needs.  

 

Working with a Broker who understands different lenders interpretation of 'Commercial Lending' will help you get the most suitable deal for your own circumstances.

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See below a list of some scenarios we have secured standard (non-commercial funding for) where the applicant had been under the impression that Commercial lending would be required.

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  • HMO let to council funded support service.

  • Large HMO's & MUFB's

  • Buy to Let property held in trust.

  • Large portfolio owned by Ltd company which is then owned in trust.

  • 30+ MUFB properties secured under 1 single loan.

  • Holiday Lets owned by Limited company.

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Each different lender has a different view on the above scenarios and it is important to cnsider the lender who will take the more favourable view on your proposition.

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How We will work for You

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First thing we will do is talk to you.  You will only ever speak to a qualified mortgage adviser (no administrators/call handlers).  We will talk through your portfolio, your properties, your plans and you funding requirements.

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We will then consider your aims and look at the most cost-effective ways of achieving these and if we think there is a better/cheaper way to achieve the same outcome we will discuss this with you.

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Once you have decided how you wish to proceed, we will then start the formal sourcing process which will involve collecting in depth information from you to avoid pitfalls later down the line and talk to lenders.

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Once we have an idea what deal options you have, we will discuss them with you, including our knowledge of lender underwriting requirements and current time scales. (These can be important factors in choosing next steps.)

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Once a deal is chosen, we will manage the application, deal with the lender and their queries and support you in achieving a successful application.

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We will also be on hand to assist through the legal process and whilst we are not solicitors we are happy to get involved in supporting you with dealing with them, and chasing them when needed.

Recent Case Study

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Residential Home, conversion to Professional Practice.

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We received a call from a gentleman who started with "I’ve called 4 brokers so far and I'm told it’s not possible so you're my last try"

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After speaking with the applicant, we discovered that they were looking to purchase a residential House, then apply for planning consent and convert the property to a professional practice.

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This did present multiple considerations: 

  • The property as it stood was a residential property and therefore couldn’t achieve commercial lending against as it did not have consent for commercial use.

  • We couldn’t obtain residential lending against the property as the intention for the property was for commercial use.

  • Applicants had only recently purchased the business (less than 2 years at the helm).

  • Applicants had a Lack of Commercial Property Ownership history.

 

We were able to rely on our relationships with several lenders and tailored a solution for our client:

  • Bridging Finance to purchase and obtain Planning consent/complete conversion.

  • Commercial Lender ready to fund off bridge, once conversion complete.

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Our applicant has completed the conversion, completed the commercial mortgage, set up practice and is trading successfully.

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Talk to us

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There is lots to consider when dealing with Commercial financing and you and your circumstances are unique and individual.  The best way for us to be able to assist you is to call and speak to one of the team.  The team here are all experienced advisers with many yeasrs in the mortgage industry.  You will get no pressure to do business with us so you don't have to move forward and you can discuss your thoughts and plans with an adviser who may be able to make some useful money/time saving suggestions.

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