Property Investment

Similar to BTL residential mortgages, commercial mortgages for property investment will be driven by rental income. Different lenders will use either gross or net rent after fees but all will stress the interest coverage against the monthly payments. Where the lending decisions do differ however, are the quality and duration of the leases and the existence of break clauses. The quality of the tenant is also assessed, something that is easy to illustrate when viewed through the lens of the Covid19 pandemic.

Commercial investment properties require additional skillsets than traditional BTL residential properties but can offer higher yields, multi-year tenancies and fully repairing (‘triple net’) leases. An investor can also diversify their rental income streams with semi-commercial properties.

Buying an investment property in the UK can prove to be a good decision and arranging the correct finance can be a key element to measuring the success of such purchases. We provide our clients with many options including interest only, flexible repayment and increased loan term, from the most competitive lenders in the market place