Commercial Mortgage Broker
At Henry Dannell, we specialise in guiding clients through the complexities of commercial finance, providing tailored lending solutions for investment properties and assets across the globe. Our experienced advisers collaborate closely with each client to develop bespoke financial strategies that align precisely with your unique needs and business objectives. Whether you’re looking to acquire, develop, or refinance, we provide the support you need to achieve your financial goals.
Please note: A mortgage is secured against your property. Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Mortgage deals may not be available, and lending is subject to individual circumstances and status.
Introduction to Commercial Mortgages
What is a Commercial Mortgage?
A commercial mortgage loan is specifically designed for businesses looking to purchase or refinance commercial properties. Unlike residential mortgages, commercial mortgages cater to property types such as office buildings, retail spaces, warehouses, or any property used for business purposes. The terms and rates can vary significantly depending on the type of business, the value of the commercial property, and the lender’s criteria.
Benefits of Using a Commercial Mortgage Broker
Partnering with a commercial mortgage broker offers several advantages:
- Access to a Wide Range of Lenders: We have an extensive network of lenders, ensuring you get access to competitive rates and terms that suit your financing requirements.
- Expertise Tailored to Your Needs: Our commercial mortgage brokers specialise in structuring debt tailored to meet your unique lending requirements. We provide expert guidance throughout the entire process, from application to completion, ensuring a smooth and efficient journey to navigate the complexities of commercial financing.
- Streamlined Application Process: We handle every step of the process, from the initial consultation to underwriting, ensuring your application is meticulously prepared to maximise your borrowing capacity and chances of approval. By liaising with all parties, we provide a smooth and stress-free experience.
Utilising a specialist commercial mortgage broker is essential to improving your chances of being approved for a commercial property loan with a competitive rate and a loan-to-value ratio that suits your needs and requirements.
Types of Commercial Mortgages
We offer a variety of commercial mortgage solutions to cater to different business needs:
Owner-Occupied Commercial Mortgages
Owner-Occupied commercial mortgages are ideal for businesses that want to purchase a property they plan to operate from. This type of mortgage is suited for companies looking to invest in business premises as a long-term solution, allowing them enabling them to invest in their own property, build equity, and secure an asset for the future.to build equity in their property.
Non-Owner-Occupied Commercial Mortgages
Non-Owner-Occupied commercial mortgages are designed for businesses or investors looking to purchase commercial property to rent out to other businesses. These types of loans focus on the investment potential and rental income the property or commercial investment can generate, making them ideal for commercial landlords.
Development Finance
Development finance is a specialist type of loan used for construction or refurbishment projects. Whether you’re developing new commercial properties or refurbishing existing ones, we facilitate the funding solutions you need to bring your projects to life. Our brokers will guide you through the process, ensuring you have the capital required for every stage of your development.
Commercial Mortgage Process
We make securing a commercial mortgage straightforward through our three-step process:
Initial Consultation
During our initial consultation, we discuss your business needs, property goals, and financial situation to find the most suitable mortgage solution. We evaluate the potential property, your eligibility, and the most appropriate commercial mortgage lenders for your specific circumstances.
Commercial Mortgage Application
Our team assists in preparing a comprehensive application to submit to our network of commercial lenders. We specialise in crafting comprehensive credit papers that clearly outline the nature of the project and compellingly articulate why the lender should approve the loan. By presenting a well-structured narrative and robust justification, we enhance the lender’s understanding of the project, addressing every aspect of the case in detail to significantly improve the chances of approval.
Approval and Funding
Once your mortgage application is approved, we take the lead in managing the process with third parties, including solicitors and agents, to ensure a seamless and timely drawdown of funds. Our team coordinates and facilitates communication between all stakeholders, proactively addressing any issues that may arise to ensure deadlines are met.
Eligibility Criteria for Commercial Mortgages
Understanding the eligibility criteria for commercial mortgages is crucial to securing the right commercial loan amount. The main factors taken into consideration include:
Property Value
The value of the property you wish to purchase or refinance is a key driver in determining your lending capability.
Business Finances
Lenders place significant emphasis on the financial health of your business when evaluating lending applications. This involves a thorough review of your financial statements, cash flow, and overall profitability to assess stability and resilience. Demonstrating a strong financial position is crucial.
Commercial Mortgage Rates and Terms
We source flexible commercial mortgage options tailored to your business needs:
Fixed and Variable Rates
- Fixed Rates: Fixed-rate mortgages provide stability by locking in your interest rate for a set period, offering predictable repayments regardless of market fluctuations.
- Variable Rates: Variable rate mortgages fluctuate with the market, which can be beneficial if rates drop. This option provides flexibility and potential savings over time but can prove more costly if the market fluctuates.
Not all lenders will offer both product types as this is specific to lender appetite.
Interest Only vs. Capital Repayment
- Interest Only: This option allows you to pay only the interest for a specified period, reducing your initial monthly repayments. Ideal for businesses expecting growth in revenue.
- Capital Repayment: This traditional approach involves paying both the interest and a portion of the principal each month, helping you build equity over time.
Not all lenders will offer both repayment types as this is specific to lender appetite.
Benefits and Features of Our Commercial Mortgage Services
At Henry Dannell, we’re committed to supporting you in achieving a tailored solution fitting your unique circumstances.
Competitive Interest Rates
Our extensive network of lenders allows us to offer some of the most competitive interest rates in the market, helping you secure the most favourable terms for your commercial property financing.
Personalised Advice
Our team of specialist commercial mortgage brokers take the time to understand your business and its unique needs, offering tailored advice and support throughout your mortgage journey.
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Frequently Asked Questions
Commercial mortgages involve a loan secured against a commercial property. You repay the loan over a set period, with interest. The terms vary based on your business’s financial profile and the property type.
Lenders typically have a set pricing model that can be tailored to your specific circumstances, depending on the risk profile of your requirements and how these align with the bank’s appetite for risk.
The process involves an initial consultation, preparing and submitting your application, and working through the approval and funding stages.
Yes, this is still possible depending on the specific scenario. While it may be more challenging, our brokers can explore specialist lenders who offer commercial mortgages to businesses with adverse credit.
Legal fees can vary but typically include valuation fees, solicitor fees, and arrangement fees. We provide a transparent breakdown of all costs upfront.
Commercial mortgages are designed for properties used for business purposes, whereas residential mortgages are for personal, non-commercial properties.
Commercial Mortgage Case Studies
How we've helped our clients
Successfully Secured €5M Bridging Loan in Italy
Our Italian client pursued a €5,000,000 property acquisition, seeking a loan covering the full property value and completion within 5 weeks. This case showcases Henry Dannell's expertise in high-value property financing, demonstrating our ability to collaborate with professional introducers and deliver tailored finance solutions.
Large Portfolio Remortgage
Using our knowledge of the portfolio market, we were able to source a product/lending solution that was fitting to our client's requirements, whilst also obtaining a highly competitive high street rate that was secured prior to the end of their existing mortgage.
Bridging Loan | Buying into a Business
We were able to secure a short-term bridging loan against our client's current property. This enabled our client to extract the necessary funds from the property to buy into the business.
Secured £4.5m Loan for Portfolio Landlord’s Investment Expansion
With a mixed asset portfolio, our client sought capital for new investments. Utilising our well-establishing relationships with lenders, we were able to successfully raise £1.8 million on behalf of our client.
What our clients say…
'If you think all broker services are alike, merely inputting your details into a computer and charging fees, then it’s time to reconsider. Matt Karagul from Henry Dannell has completely changed my perspective! My company required a complex refinancing involving multiple bankers, a task that other brokers claimed was impossible.'
Business Owner