UK Residential Investment Mortgages

UK Commercial Mortgages for Investment Property in Housing, Flats and Apartments.

Our commercial property mortgage consultants all have backgrounds in the banking sector and can offer added experience and advice to clients in respect of structuring residential property investment deals such as commercial mortgages for Investment Property in Housing, Flats and Apartments for the rental market.

Acceptable security

Almost all residential investment property is acceptable, this includes:

  • Houses
  • Flats
  • Apartments
  • HMO's

Commercial Mortgage Application

We have access to over 80 commercial mortgage lenders, with some offering Adverse Credit Commercial Mortgages enabling us to match the client’s UK Residential Commercial Mortgage requirements to the most appropriate lender. At Sterling Commercial Finance, we are able to source a wide range of innovative and competitive commercial property finance packages, secured against investment property, factories and offices, warehousing and storage, hotels, pubs and restaurants, care homes and professional practices.The financial information that we will need to support a mortgage application is as follows:

  • Last 3 years Audited Accounts
  • Latest Management Figures
  • Profit & Loss Forecast for next 12 months
  • Last 6 months business bank statements
  • Brief CV/profiles of partners/directors
  • Asset/liability statements of applicants

Case Study 1 - Investment Property Portfolio - £525,000

Area - Investment Property Portfolio, value £690,000 covering Leicester
Mix of retail, factory and residential. Total rental income £103,000 per annum. Our deal enabled our client to go out and purchase 3 more Commercial Properties. His existing funder felt this was too big a jump in one go and was only prepared to fund one acquisition.

Residential Investment Mortgage Solution

  • Sterling arranged a mortgage of £460,000 over a 15 year repayment period, at LIBOR plus margin 5.4%.
  • Our deal had the joint benefits of allowing the client to expand at a faster pace, provided him with a longer repayment period.

Case Study 2 - Property Development Facility - £1,000,000

Area - Development Facility for 9 houses in the Cotswolds
The client owned a Residential Care Home, which had closed down because it was not "fit for the future".

Planning permission was obtained for a Residential Housing Development which involved demolishing part of the existing Home and converting the remainder into two units, plus seven new build units in the grounds. The client's Project Manager was formerly the Commercial Director of one of the large building plc's.

Residential Commercial Mortgage Solution

  • Facility agreed of £1,000,000 covered 100% of development costs.
  • Bank base rate plus margin 4%.

Case Study 3 - Property Development Facility - £2,000,000

Area - Development facility to build 20 self-contained, 5-bedroom flats for the student market in Leicester
Client is converting his existing factory unit into flats and also building a new block of flats on land he owns adjacent to the factory. The property is in a prime location, opposite a major University.
The client's existing bankers were only prepared to fund the development on a phased basis. Our deal enabled the client to build out in one operation, saving considerably on build costs.

Residential Commercial Mortgage Solution

  • A 15 year repayment facility was agreed at bank base plus margin 2%

Case Study 4 - Residential Investment Portfolio - £1,500,000

Area - Investment Property Portfolio in North London, mix of houses and flats.
With the rise in property values over the last 3 years, our client was eager to utilise the equity in his existing portfolio to go out and purchase more residential property.
The client's existing bank did not come up with a particularly attractive package.

Residential Commercial Mortgage Solution

  • Sterling arranged a Facility of £1,500,000 over 20 years with an initial interest only period of 24 months. Bank base rate plus margin 1.5%.

All cases are supported by professionally prepared credit applications, thereby significantly enhancing the chances of our clients securing the optimum financial package. Unlike some of our competitors, we do not believe in up front charges. Our fees are only payable when our client has received a formal offer of finance.