The first and foremost thing that an individual should know about Owner Occupier mortgages is the process of obtaining one. In order to get a mortgage, you will need to contact a lender who deals with owner occupiers. The lender will then assess your ability to pay for the property in question based on your income, your credit rating and other factors such as your employment history.
If you are deemed to be a good candidate for an owner occupier mortgage, the lender will then offer you a loan. The loan will be for a specific amount of money and will have to be repaid over a set period of time, typically 25 years. The interest rate on the loan will be fixed, meaning that your monthly repayments will not change over the course of the loan.
It is important to remember that you are responsible for repaying the entire loan, even if you sell the property or move out before the end of the loan term. If you do not keep up with your repayments, the lender may take possession of the property.
Different situations where a commercial owner occupier may need to take out a mortgage
A commercial owner-occupier may find themselves in need of a mortgage in a variety of situations:
- They may be getting ready to expand their operation.
- They might be refinancing their commercial property with a prior lender.
- They may be purchasing a company building that includes residential space and commercial office space, with the intention of renting out the remaining part to other businesses.
- They may be purchasing their first ‘trading business.’
Owner-occupied commercial mortgages are viewed more favourably than investment loans since the lenders feel there is less risk, providing a loan to value (LTV) of roughly 70-75 percent.
To get started with your Owner-occupied commercial mortgage, speak to a member of our team today!