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Categories: guides | commercial mortgage guides

If you are considering investing in a business premises with a commercial investment mortgage, to let it out to tenants and you want to know what factors affect the mortgage interest rates you can secure, then watch our video guide which goes through the detail on this.

Commercial property as an investment typically benefits from higher yields than other property types, but it does come with higher risks. We have a number of guides on the subject, and a good starting point is “Should I invest in commercial property?”. 

Click through on the following link to find the rest of our guides on commercial mortgages.

When you are ready to apply for a mortgage, get in touch with our specialist commercial advisors, who will do all the due diligence necessary to match you to a lender product that meets your requirements.

 

Video guide transcript: Tips on securing competitive rates on a commercial investment mortgage

“If you're looking to invest in an investment commercial property, so that essentially means if you're looking to buy the property to let out to a third-party tenant, a few factors to look into would be:

  1. When it comes to the third party tenant, the lender would require a minimum 12 month commercial lease to be in place for that tenant by completion. 
  2. When it comes to experience, there are a few lenders that we work with who can lend to a first-time landlord, so you don't necessarily need to have experience, but if you are looking to get access to more competitive commercial rates is always good to have a minimum of two years of buy to let or commercial landlord experience.
  3. In terms of loads of value, you can borrow up to 75% of the purchase price of the property. Now, if you do have a much stronger deposit, and you can only borrow up to 60% or 65% of the purchase price, you can then get access to more competitive commercial rates
  4. You can invest either via a limited company or personally, it completely depends on how you want to structure your portfolio. 
  5. One final thing to note is that, in terms of the commercial lending, we can still submit an application on the basis the property is currently still vacant, however, you will need to have that commercial tenant in place by completion.

“So if investing in commercial properties, is something that you're interested in, please give us a call. That is definitely something that we can help with.”