Commercial mortgages · Companies only

Commercial mortgages for property companies

Longer-term lending for companies that hold commercial and semi-commercial investment property — often the exit from a bridge or a development facility.

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What a commercial mortgage is

A commercial mortgage is a term loan, usually over two to twenty-five years, secured against property that the borrowing company holds as an investment. Lenders assess the strength of the rental income relative to the loan — the interest cover ratio — as well as the value of the property, the quality of the tenants and the length of the leases.

We arrange commercial mortgages for companies only: limited companies, LLPs and SPVs holding property for investment. We do not arrange mortgages on property that a borrower, or a member of their family, lives in or intends to live in.

Commercial investment mortgages

For property let to commercial tenants — offices, retail, industrial and logistics units, leisure and similar. Lenders focus on tenant covenant strength, unexpired lease terms and how the rent compares with market levels. Multi-let assets are assessed on the overall income profile and void risk.

Semi-commercial (mixed-use) mortgages

For buildings that combine commercial and residential space — typically a shop or office on the ground floor with flats above. Lenders treat these differently depending on the split between commercial and residential value, so the right lender is not always obvious. We match the property to the lenders whose criteria suit its mix.

Typical uses

Refinancing a bridging loan once a property is let and stabilised
Refinancing completed development units being held for rent
Buying a let commercial or mixed-use investment
Releasing equity from an existing portfolio for new acquisitions
Moving a portfolio to a single lender on more suitable terms

What lenders will look at

Current leases and the rent roll
Tenant covenant strength and lease lengths
Interest cover at the lender’s stressed rate
Company accounts and the experience of the directors as landlords

Questions

Frequently asked questions

Do you arrange residential or owner-occupied mortgages?

No. We only arrange finance for companies holding property for investment or development. We do not arrange loans secured on a property that a borrower or their family lives in or intends to live in.

Can a commercial mortgage refinance a bridging loan?

Yes — this is one of the most common exits from a bridge. Once a property is refurbished and let, a term lender can usually refinance the bridge. We plan this exit at the time the bridge is arranged.

What interest cover do lenders require?

Each lender sets its own interest cover ratio and stress rate, which vary with property type and borrower profile. We calculate this early so you know how much the rental income will support before an application is made.

Refinancing or buying an investment property?

Tell us about the property, the tenants and the loan you need. We will tell you which lenders are likely to fit.

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