Industrial Mortgages

Our industrial mortgage and finance team can help and advise you with all industrial based mortgage or finance solutions. Whether its a new factory unit or warehouse expansion we can help secure the right financial solution for you. At Access Commercial Ltd we have a proven track record in helping lots of businesses within the industrial sector secure finance fast!

Purchasers of industrial property will normally be able to borrow up to 80 percent of the value of a property, provided that the mortgage application is accompanied by a plausible business plan.

Borrowers can expect to pay between 1.25 percent and 3 percent above Bank of England Base Rate for a mortgage term of between 10 and 30 years. The exact rate of interest payable and length of mortgage term will be determined by the lender’s assessment of the borrower’s financial situation.

Information Required by Potential Lenders

Commercial mortgages are available from specialist lenders and some high street banks for the purchase of a range of industrial property including factory units, warehouses and other manufacturing and storage facilities.

Before granting an industrial mortgage, a financial institution will require information about the following:

• Trading accounts for the previous 2 years for an existing business, or income projections for a new business
• Geographical location of the property
• Relevant commercial and industrial expertise and experience available within the business
• Size of available deposit for down payment on the property
• Building and land survey
• Whether there is any adverse credit history
• Legal issues such as right of access to the property
• Environmental problems that could affect the property

For a business that is currently trading, some financial institutions will take note of the value of the whole business when calculating how much they are willing to lend. Other lenders will only take into account the value of the land and buildings for which the mortgage is required.

Obtaining a mortgage for an industrial property is not always a straightforward procedure. Borrowers should be prepared to make applications to a number of different mortgage lenders in order to obtain a suitable mortgage offer. A well prepared business plan will go a long way towards convincing a commercial lender that your mortgage proposition is worth funding.

Summary

• Commercial mortgages are available for a wide range of industrial properties
• Commercial lenders usually require comprehensive business plans included with applications for industrial mortgages
• Some lenders will take account of the total value of a business when deciding whether to grant an industrial mortgage