Commercial Property Mortgages and Loans

Commercial Property Mortgages and Loans are Mortgages & Loans secured against Commercial & Semi-Commercial Property.

This area is far more specialised area than Residential borrowing. For most businesses, property purchase is the biggest investment after staff. "Pathfinder Commercial Finance" can source the best deal for you, depending on the type of property, loan to value, business and personal history. We can often provide mortgages for clients who have been refused a loan by their Bank or present lender.

With purchases, it must be remembered that lenders are not only looking at a bricks and mortar valuation but also take into account "going concern", based on the open market value of the business the normal term for "Commercial Mortgages" is ten (10) to fifteen (15) years but we do have lenders who are more flexible. We even have lenders who will provide interest only mortgages up to age seventy-five, subject to certain criteria being met.

With re-mortgages, for those clients who are tied to a "fixed rate" with their present lender, now may be the time to consider a re-mortgage, to reduce monthly costs and also possibly release additional equity from the property. Please note that to support an application outside income can be considered. This may be in the form of one partner keeping a job on, rental income, and pension or investment income. Whilst the business will need to demonstrate that it can meet its own costs, such income can be used to replace the need for the business to provide owners drawings.

Every mortgage/loan application is unique and it is important that each is carefully prepared and presented. It is vital that all possible information required is provided i.e. accounts; business plan; bank statements. Ideally, audited accounts should be available for the business confirming that the business has, from existing turnover, the ability to meet your borrowing and drawing requirements. However, it is recognised that for a variety of reasons this may not always be the case and that the lending will need to be assessed on the potential of the business under your control.

"Pathfinder" can source mortgages/loans for most types of business and commercial premises. We can provide lending for Factories; Warehouses; Shops; Hotels; Public Houses; Nursing & Care Homes; Farms; Golf courses; Equestrian centres; Petrol Stations. We also have lenders who will consider more unusual properties such as Leisure Centres; please contact "Pathfinder" for details. We also have lenders who provide "Development Finance" for Builders. Bridging Finance is also available. For Investors looking to invest their money, the Commercial Property Market has a great deal of attraction at this time. At a time when returns are very low, this market could produce a far higher rate of return.

Whilst in every case we will endeavour to obtain the best terms for our clients, they are subject to an acceptable proposition. For sound deals, rates of between Bank Base +1.5% and 2.75% should be anticipated and for more marginal propositions an interest rate of between Bank Base + 3% and 4% is usual.

Whatever your requirements, we are happy to discuss your needs.