Business First Finance

Mortgages & Remortgages

Mortgages & Remortgages

Owner Occupier Mortgage.

This mortgage is available for the purchase of a property by an established business (including the purchase by tenants of the freehold of their property). We can also offer remortgages to expand current business premises, to raise working capital against business premises or to refinance existing business borrowings.

We arrange loans for established businesses with proven, profitable track records. We will normally ask for the last three years' audited or certified accounts. If there is less financial information available your application may still be approved but you may may be subject to a higher rate of interest.

Depending on the quality of the property available as security, loans can be arranged for up to 85% of valuation (up to 100% with additional security). Property types include industrial units, warehouses, factories and offices, public houses, hotels, guest houses, restaurants, care homes and nursing homes. All loans are subject to status and secured against property. Sometimes other, additional security may be required.


The documentation you will need to provide with your completed application form is listed below:

  • Last three years' audited or certified accounts.
  • Last three years' audited or certified accounts of the business currently being operated by the vendors, in the case of a purchase application.
  • Last three months' bank statements and overdraft facility letter (if applicable). Six months bank statements will be required where an overdraft facility is used.
  • Copy of any lease/tenancy agreement(s).
  • Details of the background and experience of the applicants.

Green mortgages at discounted rates

The Green Mortgage is a discounted rate product for businesses that are environmentally friendly. For example, they may employ effective environmental management, have an environmentally friendly building or supply an environmentally friendly product.

These businesses are offered a discount off interest rates compared to standard products for the first two years of the mortgage term. Interest rates start from 1% over LIBOR.

Offset and flexible commercial mortgages

Flexible Commercial mortgage is usually made up of two parts. The "flexible part" works like an overdraft. The "other part" works like a straightforward capital repayment mortgage.

You can borrow an agreed proportion of the total loan on the "flexible part" and reduce the balance of this "flexible part" whenever you like. As a result, you pay less in interest. As the rate of interest charged for borrowing is usually higher than the rate you receive on your business savings, the flexible mortgage should help your money work better for you. You could choose to keep all or part of the flexible facility as a reserve and redraw it down when you want. Each monthly repayment of the non-flexible part is made up of both capital and interest.

Variable Rate Mortgage

Interest rates we offer can be linked to three month LIBOR or Bank Base Rate.

LIBOR (London Inter Bank Offer Rate) is the rate of interest at which banks offer to lend money to one another in the City of London.

Fixed rate mortgage

With a fixed rate mortgage you know exactly what the interest rate will be, for a fixed period, at the start of the mortgage term. At the end of the fixed rate period, the mortgage will transfer to 3 month LIBOR or Bank Base Rate plus an interest margin (which may be either higher or lower than the fixed rate that previously applied). You should, therefore, budget for the possibility of higher repayments at the end of the fixed rate period.