Commercial Mortgages – What’s out there?

Following the initial lockdown, lenders are now opening their doors again to support commercial mortgage applications.  Whilst some of the High Street lenders still won’t accept Commercial Investment Property, we are seeing appetite return to the Owner-Occupied market albeit, probably not at the 75% LTV we’ve have seen previously. However, there are other ”top-up” funding options available, to help with the deposit.

Equally, other lenders have pulled out of the owner-occupied market and are only supporting Commercial Investment property.  We’re always reviewing our lender criteria and appetite changes.

For Commercial Investment property, typical LTVs are around the 65% mark, less for the poorer quality properties, or properties with poorer tenants, but you could expect higher for Residential Investment property. I have just achieved 75% for one client for a block of 3 flats. Interest only options are also still available, though more so on investment property.

For owner occupied property, 70% LTV is probably the best you can expect at the moment. Assuming affordability is strong, you could achieve rates around the 2.5/3% mark and some lenders don’t charge an arrangement fee either (usually around 1.5% of the loan).

We also have access to lenders who specialise in the “unusual” and can take more of a view on the type of property, borrowers’ income etc but for this you will pay a premium. If you’ve got your heart set on that property though, it’s worth exploring.

If you’re considering a commercial mortgage, now or in the future, why not get in touch to discuss the options available. There are still great deals to be had.

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