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Commercial Mortgages

80% Commercial Mortgage
85% Self Cert Commercial Mortgage
The Basics of Commercial Mortgages

Commercial Mortgages are loans that are secured on commercial property such as shops, business premises, warehouses, factories, workshops, garages, hospitals and schools.

As with a residential mortgage the commercial lender will hold the title deeds to the property as security. In the event of arrears the mortgage lender can repossess the commercial property.

A business owner who wants to fund his/her premise may use a Commercial Mortgage, this type of commercial mortgage is called ‘owner occupied’.

A Landlord can ‘buy to let commercial’ that is to say the landlord can purchase a commercial property solely for investment purposes and rely on the rental income to cover the mortgage and provide a profit.

Sipps 'choice of the affluent'

Self-invested personal pensions (Sipps) have become the pension plans of choice for the mass affluent, 29 per cent of financial advisers believe.

This is according to a survey from FundsNetwork, which also found that less than half of advisers felt that investors were aware of benefits such as improved contribution limits and increased flexibility for income drawdown brought by A-Day.

About 22 per cent of advisers felt that there was little awareness among investors about the opportunities now open to them. However, 34 per cent said that their clients were keen to find out more once they understood the potential.

Head of FundsNetwork David Dalton-Brown said that while the take-up of Sipps had more than doubled in the past year, there could still be a large amount of people who were not making full use of their additional benefits.

He commented: "Pensions always offered tax breaks on contributions and on the growth within the fund - fundamentally none of that has changed - but the previous disincentives have largely been addressed post A-Day with improved contribution limits and enhanced flexibility on uplifting benefits. Now, for many, pensions have become a lot more attractive."

Research from Abbey found that 4.8 million 45 to 54-year-olds have not yet made any plans for retirement.

Landlord Mortgages “Despite the Government u-turn on Residential Buy To Let properties being held in Sipps we are optimistic that the market will grow further as Commercial Mortgages become more mainstream. Our new range of Commercial Mortgages is set to be very dynamic indeed.”

Performance of residential investment market up in 2006

The UK residential investment market returned to mid-teen performance in 2006, a new index claims.

Investment Property Databank's (IPD) residential property index showed assets let on modern leases generating an overall return to investors of 16.8 per cent for the year, after three years of decelerating returns.

The firm said that total returns for the year were in line with those on equities and only just below those on commercial property.

Over six years, both residential and commercial property delivered returns of just under 14 per cent which was "well ahead of equities and bonds", the report claimed.

Most regions generated returns in excess of 11 per cent, while the difference in income return between different regions narrowed, from the highest, Scotland (3.7 per cent) and the lowest, central London (3.1 per cent).

Co-founding director of IPD Ian Cullen said: "These impressive 2006 returns reflect the performance of a small group of specialist residential investors."

Figures from Birmingham Midshires show that a fifth of Britons planning to purchase a property this year will do so as an investment, with many of them likely to choose a buy-to-let investment.

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