Commercial Investment Mortgages

A Commercial Investment Mortgage is designed for investors looking to purchase or refinance commercial or semi-commercial properties that are let, or intended to be let, to third-party tenants. Unlike owner-occupier mortgages, lenders primarily assess the property's investment potential, focusing on rental income, tenant covenant strength, lease terms, and the suitability of the property as security.

Key Benefits:

• Enables investors to acquire income-generating commercial assets.
• Can be used for both property purchase and refinancing.
• Potential to benefit from both rental yields and capital appreciation.
• Suitable for a wide range of commercial and semi-commercial property types.

Lender Considerations Include:

• Rental income and interest cover ratios (ICR).
• Tenant covenant strength and trading performance.
• Lease length, terms, and tenant occupancy levels.
• Property type, location, and marketability.
• Loan-to-value (LTV) requirements.
• Investor experience and track record.
• Asset quality and future income sustainability.
• The overall strength of the property as security.

This type of finance is commonly used for offices, retail units, industrial premises, mixed-use properties, and other commercial investments where rental income forms the primary source of loan repayment.