Commercial mortgages Archives - First 4 Commercial

Commercial Owner Occupancy Mortgages

An owner occupancy commercial mortgage is a business mortgage where the applicant intends to run, or is already running, their own business in the property that the mortgage relates to. First4Commercial has experience in assisting applicants for these types of commercial mortgage and can help you move to the next level of business growth.

There are a number of benefits to business owners looking to acquire a commercial owner occupancy mortgage. They are perfect for a business that is looking to relocate to new and larger premises, or a business that is seeking to purchase a new commercial property to move away from the process of leasing as they currently are doing so.

Another reason for a commercial mortgage is to raise necessary funding for a specific commercial purpose, such as investing in new staff or technical equipment to aid the company in its growth, or for those individuals who are looking to acquire a business that already exists and has a property attached (traditionally this fits the model of a Hotel, Restaurant or Public House).

If you are looking for assistance with an application for a commercial owner occupancy mortgage, you are in the right place. First4Commercial has the experience and technical team in place to help you acquire the commercial mortgage that will make a real difference to your venture. Contact us today to speak to a member of our team and we’ll be more than happy to talk through your specific project and put together a plan of action for a commercial mortgage.


Large Commercial Mortgages

Large commercial mortgages are secured on the commercial properties in questions, whether that is an office, warehouse, factory, garage or retail shop. As with residential mortgages the lender holds the deeds to the property as security. If you are searching for a commercial mortgage for your venture First4Commercial can offer specialist advice and guidance for those within the following sectors:

  • Commercial Office Space
  • Leisure Industry
  • Investment and Development Opportunities
  • Agricultural and Rural Projects
  • Retail Ventures
  • Professional Sector

A commercial mortgage is usually necessary once a business loan has finished, with figures over £25,000 usually requiring security in the form of a commercial property in order to reduce the risk to the lender. A commercial mortgage can be taken out on loans up to 100% of the value of the property in some cases with First4Commercial, with flexibility in terms of additional security where required.

As a business grows it might be necessary to take out a small business bridging loan to begin with, with a large commercial mortgage the time when the company needs to make significant changes, such as a relocation or increase in staff, technology etc. Without a commercial mortgage it can be difficult for small companies to take that leap to the next level of growth.

If you would like to speak to our commercial mortgage specialists at First4Commercial please contact us today. As you can see we have the capabilities to assist a wide range of businesses in many different sectors acquire a large commercial mortgage.


Adverse Credit Commercial Mortgages

Many different types of people enter the business world and start a company. Some of those will have adverse credit histories and be struggling to acquire the funding they need in order to build their dream career. First4Commercial understands that it isn’t always plain sailing and that there should be a way to achieve adverse credit commercial mortgages.

Adverse credit can come about for a variety of reasons, from missing credit card payments, being late due to technical reasons or oversights in terms of paying bills, or even more serious issues such as missing mortgage payments or having CCJs against your name. If you are a business owner with any of these black marks against you it could be difficult to secure a commercial mortgage from the traditional high street route.

First4Commercial can help those who find themselves in these situations, with non-status commercial loans available to those with an adverse credit history. There are higher rates of interest attached when compared to high street lenders, but it allows for customers to have a self-cert approach if they are unable to prove their income at this point. Having the flexibility to approach a business in this way could be the difference between a venture’s success and failure.

If you’d like to know more about our service and how we can provide adverse credit commercial mortgages to help you move forward with your business dreams, contact us today. Our team of specialist financial advisors will be happy to help.


Non-Status Loans

Even for those with no proof of income or with adverse credit conditions there is help available. First4Commercial has lending options that could be a help to any party looking for a non-status loan for a variety of reasons. Whether you require funds for cashflow as a new or growing business, working capital, or a loan on a commercial property, our lending options could be a viable route for you.

Non status commercial loans are a great advantage to a number of businesses in different situations. They are an ideal financing option for limited companies and sole traders who require some financial help in order to provide start-up funds, to refinance or to turnaround their business in troubled times, or to consolidate debt.

From traditional lending providers these types of businesses might struggle to acquire the financing they need due to their relative youth in the market place, but that shouldn’t stop them seeking assistance that can help a business not only stay afloat, but to thrive.

Even for those with impaired credit situations, non-status loans can be provided to secure the future of the business. We will consider all applicants, even those with adverse credit histories and can put together a non-status loan that lasts anywhere from 3 months to 10 years.

Contact First4Commercial today to secure a non-status loan that could be the assistance your business needs to push on to the next level, or to keep cashflow moving smoothly in a tight month. We look forward to assisting you.


Interest Only Mortgages on a Commercial Basis

When it comes to commercial mortgages we understand that there isn’t one option to suit everyone. Flexibility is key to us at First4Commercial and here we take a look at interest only mortgages for commercial interests.

Low Monthly Payments – When compared to the repayment option you are likely to be paying a lot less per month with an interest only mortgage. This allows you to put aside the amount required at the end of the agreement period.

Lump Incomes – For some business owners you know that you’ll be receiving a large lump sum of money through the closure of a deal or sale of a property. In these instances an interest only mortgage is the perfect option to help you pay off in full, faster, and cheaper than with a traditional repayment approach.

Flexible Payments – Unlike the traditional repayment option there is greater flexibility in terms of what you can pay back. This is great for businesses that might have fluctuating cashflow and can pay more back at certain periods of the year.

Property Developers – Interest only mortgages are perfect for those with property interests. It provides more upfront cash to go into renovation, rather than repayments and you’ll have more money to play about with once the property is sold and the loan is repaid.

If you would like to find out more information about how an interest only mortgage could be of help to your business, call us today. Our team of specialists understands how to help business owners get to where they need to be. We’ll ready to help with interest only mortgages for commercial ventures.


Commercial Mortgages for Trading Businesses

For trading businesses a commercial mortgage can be used for a variety of purposes, and with a range of benefits. If you are looking to develop existing property, branch out into new premises, extend your current building, or buy land to develop for future commercial projects, we can help you with a mortgage.

There are a number of advantages to obtaining a commercial mortgage.

Capital Gains – Purchasing commercial property can offer substantial capital gain. It is a great way to realise capital growth over a longer period of time as the valuation increases.

Lower Interest Rates – You can typically find lower rates of interest than with an unsecured agreement. A fixed monthly payment on your commercial mortgage is also a great way to have an accurate forecast of your budget.

A More Solid Future – Repayments on a commercial mortgage are unlikely to cost you more than rent, but with time your equity and foundation as a business continues to grow.

Rental Opportunities – Owning your commercial space allows you to be flexible. In future if you have spare rooms you can rent those out to generate extra income.

First4Commercial understands the landscape for business owners looking to obtain a commercial mortgage for whatever reason. Contact us today to speak to a member of our team and we’ll be happy to help.


What types of mortgage are available?

When you embark on the process of trying to find the right mortgage to suit your needs it can seem like a mine field. There are so many options on the market that reflect pretty much every circumstance imaginable, if you are buying a plot to build on, re-mortgaging, a landlord with a portfolio or buying your first home, choosing the best fit mortgage is paramount. The long term financial commitment is important to consider, how will you repay your mortgage? Will it be interest only for a period of time? What are the best interest rate deals? Do you require special features? What if you want to pay your mortgage off early? These are all questions that you need to ask yourself and will be required to answer by an advisor.
Here are a few basics on the different types of mortgage available on the market currently:
• Repayment mortgage.
There are basically two ways of paying off a mortgage, one is repayment and the other is interest only. A repayment mortgage allows you to make monthly payments for an agreed term until the loan and the interest is paid off in full.

• Interest only mortgage.
Monthly payments are paid for an agreed period of time but they only cover the interest on the loan for the property. They do not chip away at the amount you owe on the property. Normally you would pay into another investment plan that would pay off the full loan at the end of its term.

• Interest rate deals.
It’s also important to look at the interest rate deals on offer too. A standard variable rate means that your mortgage will go up or down depending on the lenders standard rate of interest. This is normally in line with the Bank of England base rate. Discounted rates offer a lower rate of interest at the beginning and then move to another rate after a set period.


An award winning year for in 2015

We are looking forward to continuing our success from last year into 2016 and beyond. As usual we helped hundreds of clients with their mortgage and finance needs in the Commercial, Buy to Let and Bridging Loan sectors. Using our expertise and industry knowledge to provide the best rates, and advice to our clients and introducers.

We received three industry awards throughout 2015:

  • Most Outstanding Independent Commercial Finance Specialist – Corporate Livewire Awards
  • Best Commercial Finance Broker 2015 – UK – Acquisition International Awards
  • Best Independent Commercial Mortgage Brokers 2015 – Real Estate & Property Awards

We are very proud to be recognised for the hard work and dedication we provide to every client. With our FREE no-obligation quotations and our bridging loan lender panel in excess of 70+ lenders, we will continue to provide the best advice and market leading rates throughout 2016.

We wish all our clients, introducers and lenders a happy a prosperous 2016 and look forward to continuing where we left off.

If you have any queries or cases you wish to discuss please call the team on 01277 620083.


Key Points to consider when buying land.

There are several key issues to remember when purchasing a piece of land. Land tends to exchange hands between land agents, farmers and specialists rather than being advertised on the high street through an agent. Land can be purchased for a variety of uses and land agents generally source land directly from land banks which eliminates the third party and makes buying land a more simple process. Auctions also provide an alternative route.
• Before purchasing a piece of land it’s important to look at the ground conditions, this will affect the suitability of the plot. If you are buying land for farming purposes then check the soil type and its suitability for crops. Always check if the land is on a flood plain too.
• Access is key, how do you get onto your piece of land? Does that access point belong to you? Make sure that you will not be held to ransom after the purchase and that you have full access. Check the shape of your plot too as this will affect the type of property you may be wanting to build. Are there services on the land or will these need to be connected? If there aren’t any then the cost of these can be financially demanding. Does the land already have planning permission or has it been built on before?
• How will you pay for your land? Special finance is available for commercial and rural business as these purchases are considered more risky than a standard mortgage and property. It may be that you will need a larger deposit or have to offer solid security to the lender. Securing the right type of finance for your purchase is key to its success.


How to finance a land purchase.

Finding the right lender for a land purchase is highly important because asking the right questions will enable you to come up with a suitable package for your needs. Distinguishing between loan types within the financial service will ensure you get the right deal for you. These are just a few of the reasons a commercial land loan can be used for;
•Purchasing land to expand your existing business.
•purchasing new equipment.
•Restructure any existing borrowing to ease cash flow and therefore save money.
•Erecting new buildings or making improvements on existing ones.
•Setting up an irrigation system, wind-turbine or bio-fuel plant.
•Turning a derelict outbuilding into a holiday cottage for extra income.
•Laying a new road for access.
•Setting up a farm shop from the produce that you offer.
How to get it done.
1. Find out available agreements for land financing.
2. Check with the lender about the cost and value of the finance package.
3. Make sure the time frame for the financing loan sits comfortably for what you are able to repay. A land based loan is often based on a 10-15 year payback period whereas a standard mortgage is anything between 15-30 years.
4. Study the interest rates of the loan, look at what the available market rates are and make sure that interest rates your lender offers you are equitable.
5. Federal consumer advocate agencies and other finance experts always advise their clients and consumers to be aware of artificially high interest rates that will cost more in the long run.
6. Ask and question how much of a down payment is actually necessary for the land purchase to go through. Quite often a larger security deposit will secure a more fruitful land financing deal.
7. The more money that you have for as an upfront payment, the lower the cost will be to finance the remainder. It will also help in the application and approval process

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