Commercial property investment offers compelling opportunities with higher yields and greater stability than residential alternatives and as the landscape continues to evolve, we understand that successful commercial property investment requires more than just competitive rates – it demands a lender who truly understands your business and can provide the flexibility to capitalize on opportunities as they arise.
This is why we are proud to introduce the latest addition to our business. Our commercial mortgage products have been specifically designed to meet the diverse needs of modern property investors and businesses. Whether you’re acquiring your first commercial property, expanding an existing portfolio, or refinancing to optimize your current arrangements, our comprehensive product range provides the foundation for your commercial property success.
What is a Commercial Mortgage and How is it Used?
A commercial mortgage is a loan secured against a business property, rather than a residential one. Unlike a residential mortgage, which finances a home, a commercial mortgage is designed for properties used for business purposes or as commercial investments. These can include:
- Retail Units: Shops, restaurants, cafes.
- Office Buildings: Spaces for various businesses.
- Industrial Units: Warehouses, factories, workshops.
- Mixed-Use Properties: Buildings with both residential and commercial elements.
- Specialist Properties: Such as hotels, or certain types of leisure facilities.
Commercial mortgages are used for a variety of purposes, including:
Purchasing a new business premise: Allowing a business to own its operational base rather than rent.
Refinancing existing commercial property: To secure better terms, release equity, or consolidate debt.
Funding property development or refurbishment: Providing capital for construction or significant renovations.
Investing in commercial property for rental income: For landlords looking to expand their investment portfolios
Benefits of a Commercial Mortgage
Opting for a commercial mortgage offers several distinct advantages for businesses and investors:
- Asset Ownership: Owning commercial property can provide long-term stability and security, eliminating the uncertainties of lease agreements and rising rents.
- Capital Growth: Commercial properties can appreciate over time, offering a significant return on investment.
- Rental Income: For investors, commercial properties provide a steady stream of rental income, which can be a lucrative addition to a portfolio.
- Tax Advantages: Businesses may be able to claim tax relief on mortgage interest payments and other associated costs.
- Flexibility: Compared to traditional business loans, commercial mortgages often offer longer repayment terms, which can improve cash flow for the borrower.
Specialist Commercial Lending: Navigating Complexity with Expertise
At MT Finance, we believe access to specialist finance should be straightforward, responsive, and tailored to real-world needs. We understand that not all borrower situations fit a rigid mold, which is why we are proud to introduce our new commercial proposition designed with both brokers and borrowers in mind, with a focus on both specialist and standard commercial mortgage solutions.
For cases with complex scenarios, we will be bringing a specialist lending focus with a tailored approach that covers a wide range of sectors, from standard retail and office spaces to more niche specialist sectors. For more conventional cases, we offer high loan-to-value options capped at a maximum loan size of £2,500,000 (excluding capitalised product fees).
Our ICR stress testing from 125% for both company and individual borrowers ensures responsible and robust lending decisions with accessibility for new entrants as first-time buyers/landlords are considered, with expat considerations for expats residing in EEA or FATF member countries.
Commercial Mortgages Built Around You – The MT Finance Advantage
The overarching philosophy of MT Finance’s commercial division is to be responsive and supportive throughout the entire lending journey.
- Committed: Dedicated to finding solutions and supporting borrowers and brokers through every stage.
- Collaborative: Working closely with clients and their brokers to understand unique needs and tailor solutions.
- Concise: Streamlining processes for efficiency and clear communication.
- Constructive: Focusing on building viable pathways to finance, even for challenging cases.
- Comprehensive: Offering a wide array of products to cover diverse commercial property scenarios.
- Convenient: Making the application and approval process as straightforward as possible.
If you’re looking for a simple and hands-on approach to your cases, we are here to help -clearly, efficiently, and without unnecessary complexity.
Get in touch:
We consider individual and corporate borrowers. Whether you’re looking to finance an acquisition, refinance existing debt, or unlock capital from commercial property, our commercial mortgages product range is designed to meet diverse financing needs.
Standard Commercial Mortgage
- Loan size: from £100,000 to £2,500,000
- Loan term: from 5 to 30 years
- LTV: Up to 75% maximum LTV
- Rates: Fixed rates from 7.99% for 2 and 5-year terms
- ICR: 125% Interest Coverage Ratio requirement
- Available for individual and corporate borrowers
- Standard sectors include offices, retail, industrial, healthcare
Specialist Commercial Mortgage
- Loan size: from £100,000 to £2,500,000
- Loan term: from 5 to 30 years
- LTV: Up to 70% maximum LTV
- Rates: Fixed rates from 8.29% for 2 and 5-year terms
- Enhanced underwriting for complex property types
- Car parks, sports venues, and utilities considered
- Specialist sectors include leisure, education, energy
If you have a case you would like to discuss directly with us, drop us a line, and we will be in touch with you.