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A commercial remortgage involves switching your existing commercial mortgage to a new deal, either with your current lender or a different one. This can be a strategic move for businesses and property investors seeking to improve their financing terms, access equity, or consolidate debts.

You can borrow up to 75% but the exact loan amount depends on factors such as:

• The property’s current market value
• Rental income from the property
• Your creditworthiness and financial history

Yes, commercial remortgages allow you to unlock equity in your property. This equity can be used to reinvest in your business, purchase new assets, fund expansions, or cover other financial needs.

Yes, you can remortgage a mixed-use property with an HMO (House in Multiple Occupation) above and a commercial unit below. Lenders evaluate both the residential and commercial aspects of the property. Key factors include:

• The rental income generated by the HMO and the tenancy agreements
• The type and profile of the commercial tenant
• The property’s overall value and loan-to-value (LTV) ratio
• Your financial stability and credit profile

Such remortgages are common and provide options to secure better terms, release equity, or restructure loans to suit your financial objectives. Working with a specialist broker can help you navigate the complexities and access competitive deals for mixed-use properties.

When remortgaging a commercial property, you should anticipate costs such as:

• Valuation Fees: Covers the cost of assessing your property’s current market value.
• Arrangement Fees: Typically 1–2% of the loan amount, charged by the lender.
• Legal Fees: For conveyancing and legal documentation.
• Broker Fees: Many brokers charge a fee for arranging the mortgage; however, Mortgage.One does not charge a broker fee, ensuring a more cost-effective process for clients.
• Early repayment charges: If you switch lenders before your current deal expires.

It’s essential to factor in these costs when calculating the overall financial benefits of a remortgage.

You can choose from various rate types:

• Fixed rates: Provide certainty with fixed monthly payments for a set period.
• Variable rates: Fluctuate with market interest rates.
• Tracker rates: Track the Bank of England base rate plus a margin.

The best option depends on your risk tolerance and financial goals.

While not mandatory, working with a specialist broker can significantly simplify the process and offer several advantages. Brokers have access to a wide network of lenders, including intermediary-only lenders that are not directly available to borrowers. This provides a broader range of options, enabling borrowers to find tailored solutions that best fit their business needs.

Additionally, brokers can negotiate competitive terms, assist with documentation, and streamline the application process, saving you time and effort while increasing the chances of securing a favorable deal.

The typical timeframe for a commercial remortgage is 4 to 8 weeks. However, it’s important to remember that this is an estimate, and the actual time it takes can vary depending on several factors.

Factors that influence the timeline:

• Complexity of the transaction: Simple cases with straightforward property ownership and a strong financial profile tend to be faster. More complex transactions, such as those involving multiple properties, special property types, or intricate financial structures, may take longer.
• Lender’s requirements and processes: Different lenders have varying turnaround times and internal processes. Some lenders are known for faster processing, while others may take longer.
• Completeness and accuracy of your application: Providing all the necessary documentation upfront and ensuring it’s accurate and complete can significantly speed up the process. Delays often occur due to missing or incorrect information.
• Property valuation: The time it takes to get a valuation on the property can vary depending on the property type, the valuer’s availability, and the complexity of the valuation.
• Legal work: The legal process of finalizing the remortgage can also add time to the overall timeline, especially if there are complex legal issues to address.
• Your responsiveness: A crucial factor is how quickly you respond to lender queries and documentation requests. Promptly providing any requested information can significantly expedite the process.

At Mortgage.One, we strive to make the process as efficient as possible. Our experienced advisors will guide you through each step, help you gather the necessary documentation, and work closely with lenders to ensure a smooth and timely remortgage

While the specific documents required can vary slightly between lenders, here’s a general list of what you’ll typically need to provide for a commercial remortgage application:

Personal and Business Identification:

• Proof of identity: Passport, driver’s license, or other government-issued identification.
• Proof of address: Recent utility bill, bank statement, or council tax bill.
• Company registration documents: If applicable, documents related to your company’s registration and structure (e.g., Articles of Association, Certificate of Incorporation).

Financial Information:

• Business or financial accounts: Recent annual accounts, profit and loss statements, and balance sheets for your business.
• Bank statements: Recent bank statements for both personal and business accounts, showing your income and expenditure.
• Asset and liability statement: A detailed list of your assets and liabilities, including any existing debts.

Property Information:

• Details of your existing mortgage: Mortgage statement showing your current loan amount, interest rate, and outstanding balance.
• Rental income statements (if applicable): If the property is tenanted, provide evidence of rental income and lease agreements.

Other potential documents:

• Business plan: A clear business plan outlining your investment strategy and future plans for the property.
• Management accounts: Up-to-date management accounts showing your business’s recent financial performance.
• Details of any other properties you own: If you have a property portfolio, lenders may require information about your other properties.

Having these documents ready can help expedite the application process. It’s also advisable to contact your chosen lender or a mortgage broker to confirm their specific document requirements.