Mortgages for Business Owner Occupiers

As we approach the end of 2009, it is good to reflect on the factors that have prevailed over that year, when it comes to lending to businesses. In fact as good responsible financial brokers, we at The Mortgage Explorer, constantly monitor market trends and analyse the various factors. This is how, we concluded that banks and other financial institutions favour lending on business premises which will be occupied by the owners of such premises.

Lenders see additional security in the fact that instead of paying rent, the business owners pay a mortgage whch will lead to the ownership of the premises and add an asset to their balance sheet.

Depending on the experience of the business owner, recent past trading accounts, tenure of the premises i.e. freehold or leasehold and size of deposit and the realted business sector, a decent rate of interest to be paid for this type of finance can be expected.

As a rule of thumb a deposit between 25 - 40% of the value of the premises, is required. The best rate of interest for such lending would be about 2% above Bank of England's Base Rate, currently at 0.5%.

Documentation required would be:

a) Last 3 years trading accounts

b) Last 6 months' business bank statements

c) Business Projection for forthcoming 12 months

d) Cash flow projection for forthcoming 12 months

e) CV of person(s) who will be running the business  

For past 10 years, The Mortgage Explorer has helped many businesses to raise finance to purchase or remortgage the premises where they will carry out their business activities. These may be professional in the healthcare sector, Bed & Breakfast owners, Manufacturers or Shop Keepers. 

The area covered is throughout the UK and the research for the most suitable provider of finance is done throughout the whole of market of financial institutions. These are mostly based on mainland UK and are household names. In a few occasions we have raised funds from Internationally based institutions but there had been an international flavour to such cases, for example where deposit for the surgery was raised from an overseas property.

Fixed, Tracker, Collar and Variable rates are available. We seek the most competitive rate of interest for our clients.

Such owner occupying businesses can be purchased through a pension plan e.g. a limited company through a Small Self Administered Scheme (SSAS) or by an individual through a Self Invested Pension Plan (SIPP). Purchases can also be done by anybody e.g. self employed without any associated pension plans. Whichever purchasing method is used, we endeavour to maximise the tax benefits for those. We work in close cooperation with accountants and other professional firms dealing with our clients in their endeavour.

The Mortgage Explorer Ltd promotes a scheme for self employed whereby a combination of daily calculation of interest on loans raised, together with equity in the premises and income from the business, will help repay the self employed's main residence in a faster and most tax efficient manner. Savings of  £ '000s are thus achieved.

We aim to make our service easy:

Please choose how you would like to be contacted:

* By our specialist dedicated to the healthcare sector - return call at a time that suits you

* By our independent advisors - email

Or please call on 08000743895 for  free initial advice.