Commercial mortgages in 2021: trends, uses and access

As many business owners continue to refine their business strategies for 2021, it’s worth considering opportunities connected to active markets like commercial mortgages. Expanding the business or looking to buy-to-let property are just a few of the reasons why you might be interested in commercial mortgages, also known as business mortgages, as it enables you to raise funds and borrow money that is secured against property.  

Why is it such an active market? Factors like more people working from home and an increased use of digital technologies provide a backdrop for some of the activity seen in recent years. Following the pandemic, these trends have only intensified, resulting in a significant number of trading businesses having to reassess their borrowing needs so they can carry out activities like repurposing premises for alternative use. 

Some other examples of activity that might occur in this area are businesses with office spaces looking to repurpose these premises following the shift to working from home during the pandemic. In this instance, they would need development finance to convert their office space into residential premises under the Permitted Development Rights. Tax and regulatory changes in recent years means the residential property investor market is still active, resulting in the market being increasing shaped by professional landlord investors who operate as SME businesses and diversify into different asset classes of House in Multiple Occupation (HMO) and Holiday Let. 

It’s also likely that many of the businesses that have secured government-backed scheme like CBILS will also look to refinance their borrowing after the initial 12-month support period. How might they do this? By looking to refinance this borrowing into longer facilities linked to their business property. 

To summarise, we expect commercial mortgages to remain a busy area of funding throughout the year, and certainly a relevant area for business owners to explore. If you’re interested in purchasing or re-mortgaging property or land for commercial use, Swoop’s team of experts can help you secure the ideal commercial mortgage for your business. Simply sign-in or register an account for free to get started.