Owner Occupier Mortgages

A Commercial Owner-Occupier Commercial Mortgage is where a SME is looking to purchase a property to run their business.

Owner-Occupier Commercial Mortgages are looked at more favourably than commercial investment loans as the lenders feel there is less risk. The lenders will look to offer a standard loan to the value of around 70-75%, with the exception of one particular high-street bank who can look at up to 100% LTV on an owner-occupier commercial mortgage

As the Banks perceive less risk, interest rates tend to be lower and more competitive with repayment terms upto 25 years in some cases. Interest rates can be variable or fixed dependent on your circumstances.

You can also refinance your current owner-occupied commercial mortgage to move to more competitive terms or raise capital to help you grow your business / fund an acquisition.

Owner-Occupier Commercial Mortgages can also be taken through your pension fund (SIPP / SASS) subject to the pension trustees approval.

Finding the right solution for your business can be tricky and complicated with some lenders focused on the vacant possession value of the property (bricks and mortar) whilst others will look at the investment value of the business including any goodwill the business may hold.

Lenders often have favourite sectors as well so it is important to take expert advice to place your mortgage with the right funder who has an appetite for the industry you operate in.