About Us Services Business & Banking Advisory Services Commercial Mortgages Commercial/Business/Personal Insurance Development Finance Enterprise Finance Guarantee Scheme Finance for Pension Funds (SSAS and SSIP) Finance for Professionals Invoice Finance & Asset Based Lending Property Funding Quote & Buy News Profiles Testimonials Contact Us Terms of Business Treating Customers Fairly Learning Modules 2XL Commercial 2XL Commercial Authorised and regulated by The Financial Conduct Authority. Enterprise Finance Guarantee Scheme

    Commercial Mortgages

    The right mortgage solution

    We aim to ensure that we find you the best possible financial solution for your individual circumstances. We will seek a full understanding of your requirements and gather the appropriate information to move your application forward.

    A commercial mortgage is, long term funding, secured on a property which is not used for residential purposes. The term may be as long as 30 years and so is frequently a large commitment where flexibility is necessary.

    These fit in to two distinctive categories as detailed below – Commercial Owner Occupier and Commercial Investment.

    Commercial Owner

    This is where the proposed borrower is also the owner of the business that occupies the property. The property can be purchased directly by the business or via an SPV (special purchase vehicle) and rented to the business. There are a number of pros and cons to this type of transaction which we can happily look to discuss with you, but you should always seek advice from your accountant or professional adviser.

    Commercial owner transactions tend to be arranged and lower interest rates than commercial investment loans and often have higher ‘Loan to Value’ rates (LTV). The LTV and rates of borrowing are normally determined by the strength of the business and by the last 3 years accounts.

    100% funding can sometimes be made available if additional security is available. Typical examples in this area to name but a few include:

    – Office blocks
    – Factories
    – Care Homes
    – Pubs
    – Restaurants
    – Hotels
    – Doctors
    – Dentists
    – Vets
    – Farms and Agricultural land
    – Retail and semi commercial including shops and flats

    These are some examples but there are many, many more.

    We’ve worked with a number of businesses, sourcing and securing commercial mortgages. View our case studies to find out more.

    Commercial Investment

    This is where the proposed borrower has no link to the occupier (s) of the building and the borrower will receive income derived from the third party (s)

    Lenders can provide loans on these types of transactions for up to 25 years in some instances and rates and terms of borrowing are often determined by the amount of deposit towards the purchase and the strength of the tenant(s)

    Repayment of a facility is determined by the rents that are being received and these are used in determining whether a loan is affordable after any associated costs have been deducted for running the portfolio.

    Loans can be made available against single properties or portfolios of properties and for any proposed loan amount.

    We have access to an extensive panel of lenders and we continually review the marketplace to ensure that you receive the best possible terms.

    It is vital that whilst you concentrate on your business, you don’t get hampered by reams of paperwork and countless phone calls. We will act from the point of enquiry to the release of funds, taking care of negotiations with the lender and over-viewing all documentation ensuring you the best possible deal in the marketplace for your circumstances from the extensive panel of lenders we work with. 2XL Commercial Finance Ltd is authorised and regulated by the Financial Conduct Authority and is a member of NACFB so you can be sure you are dealing with trusted and fully regulated advisers.

    If you would like to explore further any of the possibilities in this area then please do give us a call on 01625 421 976 or drop us a email with your enquiry details and name and contact number at info@2xlcommercial.com and one of our team of advisers will give you a call back.


    Copyright 2024 2XL Commercial Finance Ltd. Registered in England No. 6570063.