Owner Occupied Commercial Mortgages
Buy Your Business Premises Instead of Renting
If your business is paying rent every month, have you considered whether owning your premises could be a better long-term solution?
An owner occupied commercial mortgage allows a business owner to purchase the property they operate from, rather than continuing to rent from a landlord. Whether you are looking to buy an office, warehouse, retail unit, industrial premises, restaurant, medical practice or other commercial property, a commercial mortgage could help your business take control of its future.
At Cambs Ely Mortgages, we help business owners secure commercial finance solutions tailored to their circumstances and objectives.
What Is an Owner Occupied Commercial Mortgage?
An owner occupied commercial mortgage is a loan used to purchase a commercial property that will be occupied and used by your own business.
Unlike a commercial investment mortgage, where the property is purchased to generate rental income from tenants, an owner occupied mortgage is designed for businesses that intend to operate from the property themselves.
Examples include:
Offices
Retail shops
Warehouses
Industrial units
Restaurants and cafés
Dental practices
Veterinary surgeries
Medical clinics
Nurseries
Workshops
Trade counters
Professional service businesses
The property effectively becomes a business asset while providing a permanent location for your operations.
Why Are More Businesses Buying Their Premises?
Many business owners reach a point where they question whether continuing to rent is the best use of their money.
Rent payments are often one of the largest overheads a business faces. While renting provides flexibility, it also means your monthly payments are helping build someone else's investment rather than your own.
Purchasing commercial premises can provide several potential benefits.
Greater Control
Owning your premises means you are not dependent on a landlord's future plans.
You gain more certainty over your business location and avoid concerns such as lease renewals, rent increases or the property being sold.
Building a Business Asset
Over time, mortgage repayments can help build equity in the property.
Instead of paying rent indefinitely, you are investing in an asset that may form part of your long-term business strategy and retirement planning.
Potential Capital Growth
While property values can fall as well as rise, commercial property may appreciate over time.
Any increase in value belongs to you rather than a landlord.
Stable Occupancy Costs
Many businesses prefer the predictability of mortgage repayments compared to potentially increasing rental costs over the years.
How Much Can You Borrow?
Commercial mortgage lending is assessed differently from residential mortgages.
Lenders will typically consider:
Business turnover
Net profit
Affordability
Existing borrowing
Industry sector
Trading history
Property type
Deposit available
Director experience
The amount you can borrow will depend on both the property's suitability and the strength of the business.
Most lenders typically offer between 65% and 75% Loan to Value (LTV), meaning deposits are often between 25% and 35%.
However, every case is different and some lenders may offer more flexible solutions depending on the circumstances.
Limited Company and Trading Business Applications
Commercial mortgages can often be arranged through:
Limited Companies
Sole Traders
Partnerships
LLPs
Professional Practices
Trading Businesses
We work with lenders that understand business structures and can assess applications based on the specific circumstances of your business.
This is particularly important for company directors who may retain profits within the business rather than extracting all income personally.
What Types of Businesses Can Be Considered?
Commercial lenders support a wide range of sectors.
Common examples include:
Professional Services
Accountants
Solicitors
Financial advisers
Consultants
Healthcare
Dentists
Doctors
Physiotherapists
Veterinary practices
Retail
Shops
Convenience stores
Showrooms
Industrial
Warehouses
Manufacturing units
Distribution centres
Hospitality
Restaurants
Cafés
Takeaways
Specialist Businesses
Nurseries
Gyms
Trade businesses
Automotive businesses
Every lender has its own appetite for different sectors, which is why selecting the right lender can be critical.
The Commercial Mortgage Process
The process usually begins with understanding your business and objectives.
We will assess:
Your business accounts
Existing liabilities
Deposit position
Property details
Future plans
Once suitable lenders have been identified, we can obtain indicative terms and discuss the options available.
The application process typically includes:
Initial assessment
Decision in Principle
Property valuation
Underwriting
Formal offer
Legal work
Completion
Commercial transactions are often more complex than residential mortgages, making professional guidance particularly valuable.
Why Use a Commercial Mortgage Broker?
Commercial lending is not a one-size-fits-all market.
Each lender has different criteria, appetite and sector preferences.
Some lenders may favour healthcare businesses, while others specialise in industrial premises, hospitality or professional practices.
By working with Cambs Ely Mortgages, you gain access to a broad range of lenders and funding solutions without having to approach each lender individually.
We can help structure the application, present your business effectively and identify lenders most likely to support your plans.
Why Choose Cambs Ely Mortgages?
We understand that commercial finance decisions can have a significant impact on your business.
Our objective is to help business owners secure suitable funding while making the process as straightforward as possible.
We offer:
Access to commercial lenders across the UK
Support for company directors and business owners
Guidance throughout the application process
Tailored funding solutions
Straightforward communication
Whether you're purchasing your first commercial premises or expanding your business footprint, we're here to help.
Speak to a Commercial Mortgage Specialist
If you are considering purchasing your business premises, we'd be delighted to discuss your plans.
Contact Cambs Ely Mortgages today to explore your commercial mortgage options.
Building Blocks for a Brighter Future
Important Information
Commercial mortgages are not regulated by the Financial Conduct Authority in most circumstances.
The value of property can fall as well as rise.
Lending is subject to status, affordability, valuation and lender criteria.