Commercial Property Buy to Let Mortgage
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As the government seems to be waging war against residential housing providers, many buy to let investors are looking to commercial property as a stable alternative.
Commercial buy to let mortgages are essentially the same as residential buy to let mortgages but with a few minor differences;
- Generally commercial leases are for longer periods, so mortgage lenders will be concerned about who the tenant is and their ability to cover the rent (and therefore you cover the commercial buy to let mortgage).
- Due to this many lenders will expect the property to be fully let on completion. There can be exceptions but that would potentially mean a higher interest rate. It’s normal to request a delayed completion to allow time to get a tenant signed up on purchase.
What type of property can I invest in?
Commercial buy to let mortgages are available for virtually any property types including;
- Shops and semi-commercial properties.
- Hospitality businesses like Hotels, Pubs and Restaurants*
- Offices
- Workshops and trade counters
- Industrial units and estates
- Farms and land
Investing in pubs and hotels.
For short term property finance needs a bridge loan is the perfect solution. It allows the purchase or capital raise against a property with the exit then being onto a term mortgage or the sale of the property.
A bridging loan can be used for any one of a range of reasons, some examples being;
- Auction Purchase – Where speed is key.
- Refurbishment of a dilapidated property.
- Conversion of a property (often commercial to residential)
- New property development
- Capital raising for property, business or any (legal) purpose.
Professional landlord buy to let mortgages
Sometimes professional landlords have issues finding the right buy to let mortgage for their needs.
Underwriting requirements from the mortgage lenders become stricter and typically more information will be required to support the application.
Because Acorn.finance is a long established buy to let broker, we have access to commercial mortgage lenders who take a more holistic view of your situation.
Check our our how to get a buy to let mortgage guide here.
Apply for a professional landlord mortgage here.
Portfolio buy to let mortgages
Similarly to professional landlord mortgages, portfolio landlords can have issues with some lenders. Because the additional stress tests and background information required can put the application outside their limits.
To get the best buy to let mortgage for your circumstances we’ll need to your existing portfolio and a business plan as well as the normal information you’d provide.
Check our our how to get a buy to let mortgage guide here.
Apply for a portfolio landlord mortgage here.
Limited company buy to let mortgages
Ever since the introduction of Section 24 by George Osborne, placing buy to let properties in a company or trust has grown in popularity.
Our lenders accept applications in existing or new start companies and even trading companies (although availability there is more limited).
Contact one of our advisors now.
Offshore buy to let mortgages
Typically for companies registered outside the UK, LLPs, or trusts Acorn.finance arrange mortgages through our specialist lending panel based both in the UK and abroad.
Contact our specialist advisors now
Student buy to let mortgages
From student residence blocks to houses for conversion to HMO the ever growing army of students need to live somewhere.
The range of student investment property thus is broad, it’s possible to purchase flats, houses or entire blocks for student accommodation. Acorn.finance have the full range of mortgages and bridging for conversions.
Contact us for further details.
Multi Unit Block buy to let mortgages
A Mult-unit freehold block (MUFB) is just a property split into flats (or a purpose built block). The difference from a funding point of view is that the buy to let mortgage is against the freehold of the block rather than each individual flat.
A MUFB is different to an HMO in that each unit is a self contained flat rather than having shared facilities (such as kitchens, bathrooms or communal areas.)
Each flat will therefore have its own tenancy agreement, its own utilities and council tax.
The maximum loan against a MUFB can be lower than expected as some lenders discount the overall value for larger blocks.
Contact us for more information.
Houses of Multiple Occupation buy to let mortgages (HMOs)
Because they offer better cash flow than standard buy to let properties, but not as much management as serviced accommodation, HMOs are a popular choice for investors taking the next step in their journey.
The HMO mortgage market is misunderstood by many investors meaning professional advice is vital if you’re going to get the most out of your property and the best buy to let mortgage for your property.
Getting the best mortgage isn’t just about the interest rates, it’s also about what sort of valuation the lender will lend against, what sort of HMO they will lend against and what experience they expect you to have.
Applications to the wrong lenders cost time and money, by taking the time to understand understand your case before presenting to lenders, your Acorn.finance advisor will save you both, and ensure you get the best buy to let mortgage rate for your property and circumstances.
Contact us now for a consultation
Ex-pat and foreign national buy to let mortgages
Buy to let mortgages allow investment into UK property for British nationals living overseas and foreign nationals.
Individual circumstances vary but here at Acorn.finance we’ve worked with portfolio landlords adding more properties and first time landlords.
Discuss your case with one of our advisors today.
Semi-commercial buy to let mortgages
A semi-commercial property is one which is part residential and part commercial. Many lenders will view this as a commercial mortgage and as such could be outside their criteria. Fortunately Acorn.finance work with a wide selection of lenders which are lending on more complex properties.
Holiday let mortgages & Serviced Accommodation
More similar to a commercial mortgage but gaining popularity amongst buy to let investors, serviced accommodation mortgages have another page
Learn more about serviced accommodation and holiday let mortgages.
Buy to let mortgages for impaired credit
Many of us have the occasional blip in our credit file, but some lenders define us it.
Acorn.finance as a broker has access to a full range of lenders and whether it’s a couple of missed payments or a CCJ, we have the products you need.
Check our our how to get a buy to let mortgage guide here.
Apply for a portfolio landlord mortgage here.
Contact us now on 0808 164 2364
Acorn.finance – 4th Floor, Silverstream House, London. W1T 6EB