Commercial Mortgage Refinance for Owner-Occupied Trading Premises

In this case study, Positive Commercial Finance arranged a Commercial Mortgage Refinance that delivered significant long-term savings for a business owner.

The Situation

Our client had purchased their trading premises three years earlier using a commercial mortgage from their existing bank.

Although the business was performing well, they wanted to know whether a more competitive funding solution was available.

The Challenge

After discussing the client’s objectives, we carried out a full review of their existing mortgage, loan documentation and recent trading accounts.

It quickly became clear that the current finance was no longer the most competitive option available.

The client wanted to:

• Reduce borrowing costs.
• Secure a more competitive interest rate.
• Improve long-term affordability.
• Minimise the total cost of the mortgage.

Our Solution

Positive Commercial Finance approached several lenders that we knew were actively supporting strong owner-occupied businesses.

After comparing a range of offers, we presented the client with the most suitable refinancing options and explained the long-term financial impact of each.

The chosen facility delivered a significantly lower interest rate than the existing mortgage, allowing the client to repay the loan much sooner while reducing overall borrowing costs.

Deal Structure

• Loan to Value (LTV): 70%
• Loan Amount: £230,000
• Interest Rate: 2.8% above Bank Base Rate
• Arrangement Fee: 1.5%
• Term: 15 years

The Result

The refinance replaced the client’s existing commercial mortgage with a more competitive facility.

As a result, the loan term was reduced by seven years, while the lower interest rate generated savings of more than £60,000 over the life of the mortgage.

This case demonstrates how regularly reviewing commercial borrowing can uncover significant savings and improve a business’s long-term financial position.