Mortgage Finance

Buy to let mortgages, commercial property mortgages, semi-commercial mortgages, BTL portfolio mortgages

Row of houses image for BTL mortgage finance

Mortgage Market

The mortgage market is one of the largest sectors of the UK economy with ~£1.6 trillion of mortgage loans outstanding. The vast majority are regulated mortgages to homeowners, 82% of which are provided by the top 10 high street banks of which Lloyds, Nationwide, Santander, NatWest and Barclays provide 64%. It’s a complex and constantly changing market with 350+ mortgage lenders offering over 14,000 products. That statistic alone is a reason why so many property investors appoint a buy to let broker or a commercial mortgage broker to manage the complexity.

Specialist commercial mortgage lenders provide a range of buy to let mortgage products to satisfy the needs of buy to rent property investors, commercial owner-occupiers and commercial property investors. Buy to let mortgages, either for purchase and rent or refurbishment buy to let are an increasingly important sector with over 13% of the market. Buy to let properties may be single dwellings, multi-unit freehold blocks (MUFBs) or houses in multiple occupancy (HMOs). Millions of individuals and over 270,000 limited companies own investment properties, financed by a buy to let mortgage or, increasingly, a limited company buy to let mortgage.

Buy to Let and Commercial Mortgage Finance

Blueray Capital is a commercial mortgage broker and buy to let mortgage broker for clients across the country but especially in London, Oxford, West Midlands, Manchester & Leeds. We work with property investors and company owners providing whole of market access for unregulated buy to let mortgages and business mortgages.

Commercial mortgages differ from residential mortgages in several important ways. The maximum loan term is 15 years for a commercial mortgage rather than 25/30 years. The maximum loan to value (LTV) is 70% rather than 95% for a residential mortgage.

A commercial mortgage is for business use, secured on a commercial property and is typically larger, with a slightly higher interest rate and is an operating cost of the business. A residential mortgage is secured on the dwelling of the borrower and is regulated by the Financial Conduct Authority (FCA).

As a leading commercial mortgage broker operating across England, Wales, Scotland and Northern Ireland, Blueray Capital is FCA regulated and so required to demonstrate that clients receive professional service and appropriate advice. Unregulated commercial mortgage lenders are highly professional firms with robust processes to ensure that the right product is offered, repayment terms are affordable, and the property security is suitable.

Commercial and Buy to Let Mortgage Criteria

Buy to let mortgages are available for property investment, refurbishment and as an exit route for property developers. BTL mortgages are available for single dwellings, HMOs, MUFBs and semi-commercial properties.

Buy to let mortgages are from £50k up to £15m for experienced, BTL portfolio investors, although many are in the £250k to £2m range. Loan terms are usually fixed for 2 or 5 years and most have early repayment charges should the borrower wish to refinance within the term. A key element to a buy to let mortgage or a commercial property mortgage is the type and quality of the property being provided as security. Lenders have criteria around property type, location and value and offer loan to value (LTV) from 60% to 85%.

Terms vary for single units, HMOs, MUFBs and if the property is semi-commercial, all of which are likely to result in lower LTVs and slightly higher rates. The mortgage finance process is now quite rapid to acceptance in principle with many lenders offering automated online solutions, but the overall process is likely to be 2-3 weeks from offer acceptance.

For larger buy to let mortgages, lenders prefer borrowers to have existing property experience, but there are many buy to let mortgages available for the first-time property investor. Drawdown is subject to satisfactory valuation report, identity checks (KYC) and completed legal documentation.

As a trusted commercial mortgage broker we provide property investors and commercial property owner-occupiers rapid access to the entire buy to let and commercial property mortgage market. This is at no additional cost as our remuneration is provide by the lender as a share of its arrangement fee.

To receive a prompt acceptance in principle, with an indication of terms, submit a summary of the commercial property mortgage or buy to let mortgage enquiry, with details of the property concerned, by clicking on the Apply button below.