Commercial mortgage enquiries

"During the pandemic, many commercial lenders, including much of the high street, shut up shop altogether. Those that continued to do business became far more selective about who they would lend to. Sectors such as leisure and hospitality were least favoured by lenders, as they were hardest hit by the restrictions, and hence most likely to default. But for some, downturns often create opportunities and the pandemic enabled savvy buyers to find a host of attractive commercial property deals, with the main issue being finding a suitable lending partner to complete the deal. During the latter part of 2021, as restrictions eased, more commercial deals completed as lenders' appetites returned. There are two types of commercial property buyer. Owner operators with strong balance sheets will always be preferred by lenders and this can result in lower interest rates and higher loan amounts being offered. In the eyes of the lender, risk is reduced as the finance is to a tangible business with a proven trading history. In addition, owner operators are often moving from rented to owned premises, so the additional cost of a mortgage is much reduced, or even negligible. For commercial property investors, unless the tenants are high quality and on a strong lease, it's not as easy. Investors need to do their due diligence to know their market, both by sector and geography. Investors will ideally seek out deals with potential for increased rent and capital appreciation through underused space, development opportunities, or through new leases and increased rents."