Liverpool Commercial Mortgage
Residential, Commercial, Industrial or Agricultural
#TheFinanceBusiness
We are a provider of specialist property finance.
Commercial Mortgages, Bridging Loans and Development Finance for properties in Liverpool, Wirral and Merseyside.
We are a Commercial Finance Broker that provides mortgage solutions for borrowers in Liverpool, Formby, Southport, Crosby and Wirral.
- Mortgages from £50,000 to £50m
- Annual Interest Rates from just 2.94% for Commercial Mortgages
- Interest rates starting at 0.44% a month for bridging and development
- Up to 75% NET Loan To Value (LTV)
- Terms from 3 months all the way up to 30 years
- Interest roll up option, serviced loans or interest deducted
- Terms agreed in principle within a few hours
- SPVs, Limited Companies and offshore trusts are acceptable
- Funding for Buy to Let and other residential properties, hotels, bars, restaurants, care homes, industrial estates, warehouses, serviced offices, farms and farmland, serviced accommodation, factories, gyms, shops, cafes, kennels, B&Bs, guest houses
- England, Scotland and Wales
No one knows commercial finance like we do, after all, we are THE FINANCE BUSINESS – The Liverpool Commercial Mortgage provider.
Recently Completed Deals
Liverpool Commercial Mortgage - Office
£636,000 Commercial Mortgage
Rate of 3.78% pa
No exit fees
Declined by their bank
Liverpool Commercial Mortgage - HMO
£1.15m Commercial Mortgage
Rate of 7.6% pa
No arrangement or exit fees
3rd scheme for this borrower
Liverpool Commercial Mortgage - Pub
£475k Commercial Mortgage
75% NET loan
0.99% per month
Completed in 12 days
Get your free quote now
Types of Commercial Mortgages Available
Liverpool Commercial Mortgage
A standard commercial mortgage is usually used to purchase property over a period of up to 30 years, unlike a bridging loan or development finance which are restricted to 12 and 24 months respectively.
They can be used to buy the property you may be operating your business from, known as an owner occupier mortgage. Types of property that can be funded are offices, workshops, industrial units, restaurants, bars, hotels, farms and any other type of commercial premises.
We fund plenty of these schemes in areas such as Crosby, Waterloo and Formby.
Development Finance for New Projects in Liverpool
Development finance is very different. For example, if you are looking to build 10 new houses in Huyton or Roby aimed at the help to Buy market, then you will need what is known as ‘ground up development finance’.
Ground up means that you are building new structures on a piece of land, maybe land that you bought with the benefit of full planning permission or maybe you are building where an old structure used to be in place and you knocked it down and obtained planning to build new.
It could also be used to refurbish an existing building, say a large Victorian property in West Derby which you are looking to convert into 6 studio flats. The lender in question would then release the money in stages to you as you develop it, hence the term ‘development finance’.
Bridging Loans for Properties in Liverpool
A bridging loan is usually taken over 12 months but occasionally, some lenders will allow a 24 month term.
These loans are used to buy property at auction, purchase another property whilst you try to sell your own main residence, purchase a dilapidated property and refurbish it or simply to buy a property in super quick time.
For example, you could buy a property in Walton or Gateacre and convert it into bedsits for students as both areas are very student centric. Even Toxteth is becoming an area which is growing in popularity, critics of which call it the gentrification of an area.
Wit the option of rolling your interest payments over until the end of the term (the biggest plus point of any bridging loan), you really can get stuck into property with a fantastic chance of making some real money.
All With No Broker Fees
Liverpool Commercial Mortgage to buy Property and/or Land in Liverpool and Merseyside
Can anyone apply for a commercial mortgage?
The quick answer is no they can’t.
Because a commercial mortgage is separate from a borrowers residential mortgage on their main residence, it is calculated in a completely different way and the acceptance criteria is completely different to a residential mortgage too.
The official bank view of a commercial mortgage is a “mortgage to buy, refinance, refurbish or develop a property or land that is used solely for business purposes so it is for non residential property.
Whilst there are banks in Liverpool who will offer a commercial mortgage, none currently offer development finance or bridging loans.
Can you get a bridging loan to buy land with planning?
Yes you can. We can fund up to 70% of all land if it has full planning permission for residential, commercial or industrial. Land with planning bridging loans are one of our biggest products.
What types of commercial mortgages are there?
As noted above, there are actually 3 types of commercial mortgage but it’s a bit more complicated than that and in Liverpool and Merseyside, the rules are slightly different. Let us explain.
Whilst it is commonly accepted that there are bridging loans, development finance and commercial mortgages making up the ‘catch all’ of commercial mortgage, it can be broken down into two different ways.
Short term lending & long term lending
Both bridging loans and development loans are classed as short term lending because the maximum borrowing term is 24 months.
Long term lending
A commercial mortgage is classed as long term lending (known as term loans) because they can be taken over anything from 5 years to 30 years. Within this classification, there are two types, they are:
Commercial Investment Mortgage
This is where the property you are buying is going to be used for commercial purposes and you are not going to be living in it or running your business from it.
An example of this is a private landlord in Woolton, Liverpool who bought a 5 bedroom Victorian property at auction. Although he purchased it using bridging finance, once he had refurbished the property and converted it into 8 separate rooms with en-suites (commonly known as a HMO), he wanted a long term commercial mortgage to reduce his borrowing costs (a bridging loan is way more expensive than a commercial mortgage) now that he is receiving income from his fully let property.
Owner-occupier commercial mortgage
This is where a Merseyside based small business owner or SME, will be either:
- Buying the property they currently trade from or
- Buying a property to move their business into
An example of this is a garage proprietor from Formby, just outside Liverpool who wanted to buy the building that he had operated his garage/MOT business from for the last 15 years. Not only will this present him with an opportunity to see a capital increase in the building and land that he has purchased, it also secures his future by not being left open to the vagaries of a landlord who may decide to cancel his lease at any time.
Do you need planning permission from Liverpool City Council?
Even though you are applying for a Liverpool commercial mortgage, unless you are making changes to the layout of the building or you are thinking of building a new property on bare land, then you most likely won’t. Even then, not all changes to a buildings layout will mean you have to apply for planning permission. Some refurbishments or office conversions are done through something called Permitted Rights Development (PDR). This is where planning is a given and from the time of application to getting approved and can just a couple of days at most.
Liverpool City Council is keen to grant more planning under PDR.
Can a Buy to Let landlord obtain a commercial mortgage?
They can and often do but usually, the cheapest and quickest way to finance an investment property will be through a BTL (Buy to Let) mortgage.
How much can you borrow?
In Liverpool, most commercial mortgage lenders will provide loans up to 75% of the property value or purchase price – whichever is lower. However, there are some new banks and specialist mortgage lenders who will provide up to 80% Loan to Value.
In terms of actual amounts that can be borrower, the minimum loan is £50,000 and the maximum loan is £50m but of course it depends on the scheme, the borrower and the location.
What type of property can be considered?
There is a wide variety of property types (or security as lenders like to call it) that can be mortgaged, the following list isn’t exhaustive but it gives you an idea:
- Office
- Warehouse
- Pub, bar, restaurant, cafe, hotel, B&B
- Nursing home or care home
- Land with or without full planning permission
- Gyms and leisure centres
- Doctors surgeries
- New housing developments
- New apartment blocks
- Any commercial building where a business owner operates from and would like to buy – known as an owner-occupier commercial mortgage
Commercial Mortgage Borrower Requirements
Because a commercial mortgage is operated differently from a residential mortgage (like on your main home), mortgage lenders are not able to use your salary to calculate whether they can lend to you or not as it simply does not apply. The best way to look at this is to understand that a commercial mortgage is different and in no way connected to you personally, in effect, it is a business mortgage, not a personal one.
3 years business accounts
In every case, a lender will want to see a full 3 years trading accounts for your business. This will include a balance sheet, profit and loss account and potentially, SA302 statements from HMRC. There are a small number of new alternative finance providers who may look at offering a mortgage without 3 years accounts but they certainly wouldn’t look to offer up to 80% LTV.
Credit history – must be clean
Whereas with other types of commercial lending you can obtain finance with some adverse credit, with a commercial mortgage, you can’t unless the bad credit is historic, for example, over 6 years ago.
Personal Guarantee
All business mortgages come with a requirement for the borrower to provide a personal guarantee (PG). This is where all assets owned by the borrower will come into play should the borrower fail to keep up repayments on a commercial mortgage, bridging loan or development finance. The lender can (if they want to) apply to repossess another property that the borrower may own and this can include their main residential home.
Mortgage deposit
Every borrower will need up to 30% as a deposit in most cases, some times it will be just 25% but it will rarely fall below this.
Which areas of Liverpool do you lend in?
Liverpool commercial mortgages are available in Anfield, Fazakerley, Bootle, Aintree, Sefton, Walton, Crosby, Waterloo, Speke, West Derby and all over Liverpool. We also cover Birkenhead and Wallasey in Wirral as well as everywhere else on Merseyside.
Apply for a Commercial Mortgage in Liverpool
Trying to navigate around the world of commercial mortgages can be difficult because it is one of the most complex areas of property development and mortgage lending. Here at The Finance Business we have the people who know what to do and with who.
We will do everything from preparing your mortgage application to presenting it in a format that the banks like and of course, we won’t charge you a broker fee either.