Commercial mortgage deals show a strong finish to the year

Closing in the last deals of the year points to strong opportunities for SMEs keen to invest in property

AUTHOR: Stuart Pawelczyk, Head of Commercial Mortgages at Swoop

The end of the year is always a tricky time in finance: Christmas is a major distraction as well as a chance to use up annual leave and it sometimes feels that no other financial product relies on people being in the office quite as much as commercial mortgages. The Commercial Mortgage Team at Swoop has spent much of the last few weeks chasing customers to send us their paperwork, checking that it’s right the first time and badgering the lenders (in the nicest possible way) to get their side of the deal done. 

Happily, the team has managed to get facilities agreed for a number of customers throughout December, notwithstanding the circumstances that include uncertainty as the Omicron variant has emerged. Among the deals agreed, the seven closed by the team in the last month of 2021 show that there are still opportunities out there for businesses seeking to acquire property as a major asset, including three that were particularly close to my heart:

• Refinanced a portfolio of supported living properties to fund the acquisition of more units
• Commercial Mortgage for a first time buyer, acquiring a 18 bed care home
• Refinance of a 33 bed care home for an existing care operator to consolidate existing loan facilities and improve cashflow
  

As our population ages, it is not a sector that is going away, though the businesses themselves need to keep a careful eye on overheads to ensure they remain profitable. Nevertheless, property ownership is at the core of the sector and it is always a pleasure for the team to see operators establish and grow their portfolio. 

The four other deals were: 

• Corporate Buy to Let facility for an experienced property investor to acquire property
• Refinance for a group of pubs to repay an expiring loan facility
• Part refinance and part purchase of an office block that is partly owner-occupied and partly tenanted
• Commercial Mortgage to acquire a holiday let property and business
  

These deals show other ways in which commercial mortgages are used; you will notice that the refinance deals and experienced property investor point to customers who already have some knowledge in the commercial mortgage world, understand what Swoop brings to the table and values our input as a means to get the right deal done as quickly as possible.

Our final deal, from a first time buyer, shows that there are still opportunities in the leisure sector: in the depths of winter, it does us good to remember that there are reasons for optimism about 2022 and, we hope, a more normal summer. 

Commercial mortgages are a growing strand of the Swoop offer; as a company we are championing the health of SMEs at a difficult time and I’m pleased to see that property is proving to be a popular part of that picture. There is still enthusiasm from buyers and lenders – long may that continue. 

If you are thinking about commercial mortgages, whether for your first purchase or your most recent, click here to request a call back from one of our team who will happily discuss your requirements and go through the options that are available to you and your business.