Owner Occupier Commercial Mortgage for Growing Business Premises

Positive Commercial Finance specialises in arranging Owner Occupier Commercial Mortgages for businesses looking to purchase their own premises. This case study shows how we helped a growing company secure a flexible commercial mortgage with a 75% Loan to Value (LTV), allowing it to buy larger premises while preserving cash for future growth.

The Challenge

Our client had successfully outgrown their existing warehouse and office space.

After finding a larger property that better suited the business, they decided purchasing their own premises would be a better long-term solution than continuing to rent.

The business had traded successfully for more than 10 years and had strong financial accounts. However, the client wanted to keep as much working capital in the business as possible.

With uncertainty in the wider economy at the time, maintaining healthy cash reserves was a key priority.

The client also wanted a mortgage that would:

• Provide a high Loan to Value (LTV).
• Offer a fixed interest rate for greater certainty.
• Allow flexible overpayments when cash flow permitted.
• Keep monthly repayments affordable.

Our Solution

Positive Commercial Finance carried out a detailed review of the business’s financial position before preparing a funding proposal for a selection of commercial mortgage lenders.

Rather than accepting the first available offer, we invited lenders to compete for the business to secure the most suitable terms.

The client chose an Owner Occupier Commercial Mortgage that met every requirement.

The facility provided 75% Loan to Value, allowing the business to preserve valuable working capital. It also included a competitive fixed-rate period, flexible overpayment options and a 25-year repayment term, helping to keep monthly costs low.

In fact, the new mortgage repayments were lower than the rent the business had previously paid for a smaller property.

Deal Structure

• Loan to Value (LTV): 75%
• Interest Rate: 3.93% fixed for 3 years*
• Arrangement Fee: None
• Exit Fee: None
• Overpayments: Unlimited overpayments and lump sum reductions permitted
• Term: 25 years

*Interest rates reflected market conditions at the time the facility completed.

The Outcome

The client successfully purchased larger business premises while retaining more cash within the business to support future growth.

The flexible mortgage structure provided certainty through a fixed interest rate while allowing additional repayments whenever trading performance allowed.

This case study demonstrates how an Owner Occupier Commercial Mortgage can help established businesses purchase their own premises, reduce long-term occupancy costs and maintain valuable working capital.