Owner-Occupied Commercial Mortgage for a Limited Company Despite a Previous Business Failure

Positive Commercial Finance specialises in arranging Owner-Occupied Commercial Mortgages for businesses with complex borrowing requirements. In this case study, we helped a long-established limited company purchase its trading premises despite one director having a previous business failure on record.

The Opportunity

Our client had successfully operated from rented commercial premises for more than 12 years.

When the property became available to purchase, they saw the opportunity to secure their long-term business location while investing in their own premises instead of continuing to pay rent.

The business had a strong trading history and consistent financial performance.

However, there was one significant hurdle.

The Challenge

One of the company’s directors had previously been involved in a failed business.

Although the current business was profitable and well established, several lenders focused on the historic business failure rather than the company’s current financial strength.

As a result, securing a competitive commercial mortgage became more challenging.

Our Solution

Positive Commercial Finance prepared a detailed funding proposal that presented the full picture.

We explained the circumstances surrounding the previous business failure and supported the application with a comprehensive financial analysis of the current business, including three years of trading performance.

We then approached specialist lenders that assess applications on their overall commercial merits rather than relying solely on automated lending criteria.

This resulted in three competitive commercial mortgage offers for the client to consider.

Deal Structure

• Loan Amount: £455,000
• Loan to Value (LTV): 70%
• Interest Rate: 6.25% above Bank Base Rate
• Arrangement Fee: 2%
• Term: 20 years

The Result

The client selected the lender offering the highest loan-to-value together with a longer repayment term.

This structure reduced monthly repayments while providing greater certainty for future cash flow.

Most importantly, the business successfully purchased its trading premises and secured a long-term home for continued growth.

This case study demonstrates how an experienced commercial finance broker can help businesses obtain an Owner-Occupied Commercial Mortgage, even where historic business issues might initially discourage mainstream lenders.