Owner occupied

With Owner Occupier loans there are two main criteria to consider when assessing how much you can borrow:

The first is “serviceability”, which is calculated using the amount of profit your business makes compared to the cost of loan repayments. In other words, the lender has to be confident that the loan is affordable so in theory if we can demonstrate serviceability, there is no limit as to how much you can borrow.

Secondly, each lender will have a maximum percentage level they will lend against the value of the property known as Loan to Value (“LTV”). We have lenders on our panel who will lend up to 75% of the value of a property, however, in certain circumstances we have been able to secure funding at 100% of the property purchase price.

The rates for Owner Occupier loans are bespoke taking into consideration factors such as Loan to value, term length of the loan and the overall perceived risk. The lower the risk, the lower the rate, and we have facilitated loans at as low as 2.25% over base rate.

This is where you have a separate entity owning the building to the one that operates the business from the property and pays the rent, with a common interest in both entities. For Example, Mr & Mrs Smith could buy the premises in their property Company (Propco) – Smith Properties Ltd and then rent the building to their trading company (Opco) Smith Trading Ltd.

The property could be a shop, office, industrial unit, or even a pub, restaurant, hotel or care home. The possibilities are vast. We use our knowledge and experience to facilitate the most suitable mortgage available via the full range of lenders, including High Street and specialist lenders. Positive Commercial Finance has access to the whole of market.

Owner Occupier loans can range from 6 months to 25 years

The interest on a loan can in some circumstances be offset against your tax, however we would advise you to speak to your accountant or tax adviser.

Business mortgages work in the same way as the mortgage on your own home. It is simply a loan secured against a property used for business purposes.

Yes, many lenders will allow both monthly over payments – this is a good way of reducing your overall loan term and therefore reducing the overall amount of interest paid and lump sum reductions – and lump sum reductions without penalties

Most lenders will want to see at least 2 years trading accounts before granting a loan, however we have been able to source funding for start-up businesses by building a compelling case for lenders to demonstrate borrowers experience in the sector, and provided the business plan and financial projections are sound.

Owner Occupier rates and fees tend to be bespoke and are judged on a case by case basis, as lenders’ asses the perceived risk against factors such as term, loan to value, loan size, business sector and profitability of the business so no one loan is the same as another therefore it is not possible to list them all here.