Commercial investment mortgages

Got a client ready to invest in a commercial property? If they’re experienced and the property’s in a strong retail location, we can help make it happen.

Key highlights

Loans from £300,000 to £20 million (maximum aggregate exposure)
Loan to value up to 75%
Fixed and variable rates
Loan terms from 5 to 25 years
Capital and interest, part and part and interest only.

Commercial Investment mortgage rates

0.25% discount

On the rates shown. For small to medium warehouses, light manufacturing and industrial units. Get in touch to find out more.

Commercial Investment mortgage criteria

Lending criteria

Type of borrower

Sole traders.
Limited companies.
Limited liability partnerships (LLP).
Individuals and partnerships.

Eligibility

2 years’ experience of managing commercial assets.
Company registered in England and Wales.
All the shareholders and directors must be UK residents.
The company does not need to have a business account with us.

Capital raising purposes

Purchasing another property.
Commercial investment operational purposes.
Property improvements (not including structural or development).

Affordability

Minimum Income Cover Ratio (ICR) of 125% at the higher of the product stress rate or 6%. The rental income used in this calculation must be the lower of passing rent or market rent.
Fixed rate product: minimum Debt Service Cover Ratio (DSCR) of 100% at the higher of 1.40% above pay rate or 7%.
Variable rate product: minimum DSCR of 100% at the higher of 1.25% above pay rate or 7%.

Maximum loan per block or property

Variable rate: £5 million.
Fixed rate: £3 million.

Maximum committed term

Up to £2 million: 25 years.
Over £2 million: 10 years.

Interest only

Up to 50% for part and part deals.
Up to a 5 year term.

Asset criteria

Type of property

Offices.
Retail units.
Industrial buildings.
Warehouses.

Location

Must be in a good primary or secondary retail location.

Minimum value per property or unit:

£135,000.

EPC rating

A to C (or D/E with plan to get to C).

Legal charge

A first legal charge is required.

Personal guarantee

£175,000 or 10% - whichever is higher, from one or more directors.

Valuation

To be completed by a YBS panel valuer and lending based on the lower of:
purchase price
open market valuation
investment valuation.

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