Commercial mortgages

From car dealerships and restaurants – E1 can help.

Loans on offer for a wide range of business types

If you have decided to take out a commercial loan, congratulations. This means you are either:

  1. Looking to buy premises for your business
  2. Hoping to fund an additional investment against an asset you already hold.

However, before you start your search for a lender, there are probably a few questions that you may need to know the answer to. To help you down the path to commercial property ownership, we’ve created a short list of the most FAQs and their answers.

recent commercial lending portfolio for a chemical laboratory near Bristol

What is a commercial mortgage?

This loan is one that is secured against a property that you will not be living in. As mentioned above, two main reasons for taking out a commercial loan exist.

You are hoping to use the property as a business.

You are interested in financing a new investment against a current asset.

Typically, business owners and single investors choose a commercial when they are in need of a substantial amount of money. When the amount needed is£25,000 or less, business loans are the preferred option. When the amount needed exceeds £25,000, commercial property is often used to secure the loan.

Are commercial mortgages and residential mortgages the same thing?

In many ways, they are alike. For example, both loans are secured against a property and must be repaid within 25 years. At the same time, they are substantial financial commitments that are one of the easiest ways to attain a significant amount of capital. With that being said, there are quite a few differences between the two. For example, commercial loans:

Increased flexibility: Commercial loan rates tend to vary, depending on the business’ age, location, size, accounts, and more. On the other hand, residential rates tend to be more rigid. Learn more about residential mortgages and rates on this website.

Decreased regulation: While residential loans are regulated by the Financial Conduct Authority (FCA), commercial loans are not. This means that rates can be calculated differently from one case to case.

Increased rates: Commercial mortgage rates tend to be higher because residential lending is much more competitive.

Lower loan to value (LTV): With a residential mortgage, you can borrow up to 95% of a property. Commercial mortgages have much lower LTV rates, meaning that securing one will require a deposit of 25% at a minimum.

More information: While residential mortgage lenders need a minimal amount of personal income information, commercial mortgage lenders will require a comprehensive look at the owners’ financial records and the company’s accounts.

What can I expect in terms of commercial mortgage rates?

Although some individuals will be able to secure a fixed rate for a specific number of years, most will end up with a variable interest rate. Variable rates are usually set as a “tracker” percentage over a base rate (LIBOR).

What information do lenders consider when processing commercial mortgages?

To get the most competitive interest rates from a commercial mortgage, you’ll need to prove that your business is as financially secure as possible. In simple terms, lenders prefer safe investments. This is why the less risk your investment poses, the better the rate you’ll be offered. One of the most successful ways of lowering a lender’s risk is by having a substantial deposit to put down. If this isn’t possible, there are a few other things you can do to lower your rates.

Some of the top things lenders will look at include:

  1. The past two years’ audited profit and loss accounts
  2. Key stakeholders’ credit status
  3. Forecasted profits and losses for a minimum of the next three year
  4. Any personal investments that may be involved in the business
  5. A business plan that describes how you plan to repay the loan

Are there different types of commercial mortgages?

Yes, there are several commercial mortgages to choose from. Including

Owner occupied commercial mortgages: More common than other commercial mortgages, this type of mortgages is used when a business is looking to own its own commercial property. This type of mortgage may cover:

  1. Offices
  2. Industrial areas including factories, business yards
  3. Retail and shop spaces

Investment commercial mortgages: Often used by individual investors, this type of mortgage allows a business to own the property they will be working in. They may also be used to purchase a property before renting it out for a profit. This type of mortgage is ideal for:

  1. Industrial areas
  2. Retail areas
  3. Offices
  4. Single-resident properties

David at E1.

How to increase the rental value of your buy to let property

Tiling and Bathroom Renovations for properties in Croydon and South London

When renting a property in the Croydon area, the quality of a bathroom renovation is essential but has to be suited to the client and area you are targeting.

Overall, an important component of the bath renovation is the durability of the materials over the aesthetic. You often do not have much time to renovate since it is costing you time and money in rental income so when you do it you want it to be almost perfectly durable, so you don’t have to keep going back and fixing it.

Look for reliable tradesmen and get a mix of quotes. Reputable firms include K2 Construction Bathrooms and Tiling and Topps Tiles, both based in central Croydon.

The other thing when doing up a rental property is that you need to attract the correct clients.

Functionality of a bathroom

So, the functionality of the bathroom is important as well as the aesthetic. For example if the buy to let you are buying is close London and is aimed at commuters – having a good quality shower can make the difference between attracting the right client and the wrong client, i.e. the kind of tenant who will look after your bathroom and pay the rent on time and commit long term.

Should I fit a Shower or bath?

However, if you are attracting a couple or a family with small children a shower and bath in one unit might be better for your new bathroom, if you cannot have them separately.  That way you don’t discount attracting those families who require a bath.

Functionality is key and long-term revenue generation is important, the longevity of your investment the better off you are. You naturally wouldn’t want to be reinvesting into the property every 3 or years unnecessarily.

We have thought in small flats and homes with just one bathroom you are better off going with a shower / bath and a high-quality shower unit.  This enables you to attract families and young couples / singles.  If you can accommodate a larger oval bath end all the better for comfort of the bathing experience and the shower.   

The only downside to consider on a shower / bath when fitting your new bathroom is the height limitation. Be sure to measure and check that you are not preventing yourself from renting to tall people!!

Decorations of a Bathroom

There are few other things to consider for ease of maintenance in your buy to let. For example, installing waterpropfing using a high quality solution such as that supplied by Mapei (Link to CTD Tiles). This will prevent disturbing the neighbours too much if the bath overflows!! Also, will allow you to spot leaks easily e.g. from the toilet, sink or bath / shower unit. Because the water will stay within the bathroom, and you will be able to spot it.

Grout is an important detail, skipping on grout can cost you for what overall is relatively inexpensive. Grout with mould protection will help keep the bathroom looking fresh and give you the best impression and happiness to tenants.

Trim is a detail which overall doesn’t have an impact on longetvity, is more about the aesthetic look of the room. Being a buy to let property the bathroom renovation needs to be as cheap as possible but also functional.

Tiling vs Painting

Tiles although as materials cost more than paint they are more durable and easier to clean. You could maybe consider having half paint and half tiles.  We would strongly recommend tiling around the sink area (splash back) and behind the toilet. Naturally the shower area being a no brainer. The alternative to tiler the shower area would be plastic, which is a worthwhile consideration.

Choosing a Tiling Contractor

Tiles both floor and wall tiles if well fitted can be a good investment in a rental property. When fitting the bathroom consider the colour of the tiles carefully. If you should need large remedial works, its good if the floor or wall are neutral colours allowing you to easily replace the whole surface and still having the bathroom coordinated. You could fit whites, greys, and creams and other such neutral tones and interchange them should the need arise.

An area tilers and bathroom fitters often skip on is the quality of adhesive and even more so the amount of adhesive which is spread. It is of critical importance that you ensure your tiler spread the whole tile with adhesive especially if this is going to be laid on the floor. We have had countless times when we have gone into repair floor tiles, and it has been because the tiles have cracked because there is imbalance in how the adhesive has been spread.  Be particularly vigilant of this when you are using a contractor to install the bathroom.

Fixtures in a new bath

Tap fittings for the bathroom should be of decent quality if mixer taps have been chosen, we strongly recommend getting one with a high quality ceramic internal fixture to avoid continually repair. The sink and toilets are generally functional from most suppliers, but a decent flushing mechanism can save on maintenance int eh future.

See our previous guide discussing little-known strategies for competitive commercial mortgages.

Bristol Businesses – Boom Town

Clifton suspension bridge in Bristol

City of cities?

It’s the go-to city, full of pop, culture and locals with a spring in their step. Yes, Bristol is a sought-after city to be living in and boasts some of the highest house prices rises in the last 24 months.

The city is now ranked as the most productive hub in the entire British Isles and techie revenues boast over £300,000 per employee! That’s the #boom.


A downside

Bristol is multicultural, without doubt, but remains dominated by white men so change is needed.

As foreigners continue to hit our shores, in spite of Brexit, language skills are crucial. Progress-English is a leading language school in the city and supports those from Spain, Poland and other European countries.


Business diversity

Despite white male dominance, the South West’s leading city is diverse in its business types with a growing trend in holistic treatment centres, counselling and therapy clinics and foodie shacks.


Enough blurbing, I’m off for lunch whilst you watch the video below…

David E
Hit this button for a quick mortage quote.


Shout out finance check

Ya’ll, it’s David here again, this time shouting out for the latest safety net in finance.

Yeah, not only do we discuss mortgage finance for your next dream property in the UK, or overseas, but we talk cars too. You can see one such post right here where I mention car leasing as the way to go for saving money.

But, todays shout out goes to a cool car history checking service called CarVeto. What I love about these guys is their finance checking services. It’s unlike any other check on the market as Veto give you a straight buy, don’t buy or warning status on any UK vehicle. It’s clear and direct.


checking a used car logo


Problem I get with the other services like hpi check or RAC passport is the uncertainty that comes with the result.

Plate transfers, 4 owners etc. What does this all mean? Can I buy the car safely or no?

CarVeto services get straight to the point.

They have a free and paid check service and a tonne of free guides on buying a used motor.

If you’re buying a used vehicle make sure you buy a CarVeto for just £12.50. One product on offer aside from their free service.

We like….

David at E1 🙂

House renovation tips and tricks of the trade

Improving your home’s value

Home renovations can be difficult! Hiring builders, getting planning permission, booking skip, managing builders, making the right colour tea, picking the kids up, getting stuck in the smog-ridden lanes of London, the list goes on; so how can you make it a smooth journey?

drawings of a loft conversion plan

Get to know the building inspection process

Read up on the local authority website, to understand what parts of a renovation need to be approved by a building inspector. For example, in Wandsworth, you must tell Wandsworth council 24 hours before commencing this sort of work:

  • Damp proof coursing
  • Drainage systems
  • Any excavations of foundations


This is an important step and will help.  If you forgo this, you may end up having to tear down your work, so it can be inspected by the council.


Think Ahead

The first thing is thinking ahead, creating a schedule and sticking to it.  For example, if you can only work on Sundays, you need to ask can it be done in a day? If not, can the area remain out of use for the time you need for example for two or three weeks.


Stay on the right side of the law and get all your paperwork straight

Work out clear agreements if you are hiring anyone to do work in your home. Make sure your adherer to London Planning permission and regulations. To get approved by your local authority you may need to submit drawings from professionals such as architects, building conversion experts or structural engineers.

The paper work can all seem heavy going and cumbersome but stick with it and be thorough, so you don’t run into problems down the line.


Make a realistic budget (with a contingency)

Draw out a table or simple list with all the products you want and the associated costs, this will give you an idea of overall costs and help you to make sure you don’t run out of money half way through! And do double check availability and any necessary delivery for material.  Always add a 10% or so contingency to your budget or ideally double check it with a friend who knows his DIY. Remember prices in London can be 5-8% more than other parts of the country.


And more contingency planning

Remember being lenient with time scales  and any extra help you may need, you can run into unexpected things. For example, you could go to remove some plaster board, but find a leaky pipe behind it. So now you have another job to do, a plumbing job. Do you have the skills for the plumbing job? If not you may need help, accept it adapt, and get the job done.

Hope these four tips help, happy renovating.

Do You Really Need to Keep that Paperwork? Rules to Follow

How much paperwork do you have lying around? From old mortgage and investment paperwork to receipts for large purchases, many of us have quite a bit of paperwork situated around our house. Of course, you don’t want to get rid of a crucial documents only to learn you need them for an HRMC compliance check or audit. But you also don’t want to keep it indefinitely. So, when it is time to get rid of these old documents.

the law for keeping mortgage and business paperwork with HMRC and the government

Here’s what you need to know

A Look at Enquiry Time Limits according to the HRMC Handbook,

As of 25 May 2017, the HRMC has up to 15 months from the date you file a return to initiate an enquiry. After this date, tax returns are usually considered “final.”

With that being said, if you feel that you have made an “error or mistake,” you have four years from the end of the year of the assessment to contact the HRMC. Keep in mind these are strict rules regarding what can be corrected.

If the HRMC suspects you provided false information due to “careless behaviour,” they have up to 6 years to file an enquiry.

However, if the HRMC believes that you were “deliberately false” with the information you provided, they can go back 20 years.

The HRMC suggests that you retain your return records for a minimum of 22 months from the end of the year the tax return is for. You can seek professional advice on this matter with one of the leading accountants in Streatham, London.

Real Estate and Mortgage Documents
Typically, it is a good idea to retain your year-end mortgage statements for 3 years. This also applies to property tax payments and Private Mortgage Insurance (PMI). You can choose to hang on to cancelled cheques or bank statements as proof of your deduction. You also have the option of holding on to the actual bills you received.

Be sure to retain receipts for any energy tax credits, such as the installation of energy efficient windows, heating and cooling systems, doors, and solar panels, for as long as you own the property plus 3 years. This also applies to receipts for capital expenses, including home improvement projects and additions. This allows you to provide proof of your deductions and may be beneficial when selling the property.

Real Estate Investments
Landlords should file LLC agreements for any real estate investments for as long as the LLC exists. Landlord insurance policies should be kept until the policy is updated. It is also recommended that landlords retain insurance payment receipts for 3 years.

Other Investments
You should hang onto any records regarding nondeductible contributions to an IRA, ISA, or PPP. To cut down on paper, scan them, save them, and shred the paper copies. When it comes to quarterly statements on any type of investment, keep them until the annual statement arrived. Annual statements should be retained indefinitely.

Insurance and Warranties
Although it doesn’t apply to the HRMC, there is some insurance and warranty paperwork you’ll want to keep. Whether you are a homeowner or are renting the place, it’s strongly suggested that you keep a detailed inventory sheet of your possessions. Any expensive items should include serial/ model numbers and photos. You should keep this for as long as you own the item. Retain any warranties or service contracts until the warranty or contract has expired. This includes car purchases or leasing deals as stipulated by HMRC.

Bank Records, Credit Cards, Bills, and Pay Check Stubs
Thanks to technology, there is really no reason to keep paper copies of your bank statements. You should be able to pull up cancelled cheques online and other types of payment confirmations, if needed. Be sure to shred any paper bank records before disposing of them. This is also true of credit cards. You should be able to find any information you need online, meaning it’s okay to go ahead and shred your statements after looking over them.

After rectifying your monthly bills against your bank statements to make certain everything is correct, you can shred them. This also applies to your paycheck stubs. After ensuring they match up with what is on your P60, shred away.

Medical Records
It’s suggested that you retain your pertinent medical records for 5 years. If they are lost, you can go back to your GP, who will likely provide a copy for a small fee.

Miscellaneous Documents
Property trusts and wills should be retained indefinitely or until they are updated with a new version. Home sale clauses that accompany a divorce decree should be held onto until your ex sells the property, plus at least 3 years.

If you employ live-in help, such as a nanny or housekeeper, keep their entire employee file for a minimum of 4 years after they have moved on.

On a final note, it’s important to remember that you should never simply throw away documents that include your identifying information. Always shred them first!


Finance and Leasing Figures

The latest figures published yesterday, on Monday, January 31st by the Land Registry suggest that house prices in the UK have fallen by 1.3% in 2017.

In December 2011 an average property is the UK was priced at 160,400 pounds (unchanged from November 2016) and yet lower than in 2015.
The report also revealed that the only city in Great Britain to see annual price growth in 2011 was London. House prices in the capital rose by 2.8% and reached 345,300 pounds.

The biggest annual decline was registered in the North East of England, it constituted 7.1%. An average house in the North East was priced at 99,500 in December 2016.

Commenting on the findings of the Land Registry, Howard Archer of IHS Global Insight said: “Prices will fall 5% in 2012 amid low wage growth, rising unemployment and major concerns over the economic outlook.”
The detailed house prices report is available on the official website of the Land Registry.

Also worth a mentioned is the growing stats on car purchases and leasing agreements that seems somewhat counterintuitive to trends and the pending Brexit issues we are all having to face.

More and more new cars are being sold and bought these days, and much of that success lends to car leasing and PCP agreements that are enjoying a significant spike in demand.

With diesel prices set to fall over coming years, consumers feel less risk leasing a car versus buying one.

If you’re planning to buy a used car this year, check out Carpilot HPI check, which offers a leading car history investigation service for just £2.95

Turbulent times ahead?

David E1.

Home Ownership Costs Continue to Rise?

The latest research by Halifax revealed that the cost of owning and running a home hit 4-year high in January 2017.

2017 housing statistics

As such, the average cost that homeowners faced was 9,393 pounds, which compares t0 9,406 in January 20012. This compares to 9,149 at the same time last year (a 2.7% increase).
The highest increase was associated with utility bills. For example, gas and electricity bills rose by 281 pounds, which compares to only 31 pounds rise in garden tools cost.
Commenting on the findings, Martin Ellis, Halifax’ chief economist, said: “The typical costs of owning and running a home has increased over the past year, returning the overall level to that of four years ago… The prospect of declining consumer price inflation through much of 2017 may help the costs associated with running a home to ease as well, providing some welcome relief to homeowners.”
You can learn more about the research by Halifax on the company’s official website.

For business
For businesses, a likely Hard Brexit could spell doom. Import and export businesses may find it particularly hard as new, independent deals get thrashed out during the next 24 months.

senior officials UK parliment

Some senior bank figures have been equally hard in their talk to make assurances that a ‘free trade deal’ which includes financial services may not be the best move – whilst most continue to support an economy that stays within the single market.
Hook up to our RSS feed for instant updates without having to visit our website.
This article was kindly donated on behalf of interior designers in Bristol OEG Interiors, a leading commercial design and planning company from the South West of England.
Thanks ya’ll.

David @E1.

Who are E1?

We are investors and lenders that operate a loan and funding company that strives to provide enabling financial environment for investors, entrepreneurs and businessmen.
We provides financing to Small-cap, large companies, start up, corporate bodies & publicly traded companies. Our mission is to add value by providing not only financial resources and industry knowledge, we maintain successful long term relationships with our portfolio companies. Our expertise lies only partly in creating flexible financial structures.
Contact us to see how we can help make your business grow financially.
We provide and specialize in both Secured and unsecured long and short term loans.
Loans and financing are available on the following lending options:
  • International business loans
  • Start up business loans
  • Investment loans
  • Business expansion loans
  • Real estate financing
  • Commercial loans
  • Residential loans
  • Home and mortgage loans
  • Construction loans
  • Hard money loans,
  • Personal loans Debt consolidation loans e.t.c.

One of the Best Cash Rich Saving Deals.

Recently, the Kent Reliance Banking service, also known as KRBS, a Kent based building society, launched a best buy savings deal for cash-rich investors.

The bond, which is a one-year fix, is available for savers with a minimum deposit of 50,000 pounds.

piggy bank image depicting how to save money

Savers have an opportunity to choose between monthly and yearly payouts. Those, who choose to receive their interest on a monthly basis, get a 3.6% interest rate, while those who choose to get their interest once a year, get a 3.66% interest rate.

The savings deal does not allow for early withdrawals or additions.

Moneyfacts, an online comparison tool, awarded this Limited Edition Bond by the Kent Reliance Banking service four stars out of five.

Commenting on the new deal, money experts at the Independent, said: “Fixed rates can be attractive, unless interest rates generally move up and the rate you’re stuck with ends up looking paltry. However, with no rate increases expected for months, the account could prove worthwhile.”

Let’s hope the British Pound stabilises and begins to recover some of its worth over the next 12 months.

Who really knows what post Brexit is going to look like. Seems like the perfect time to have some savings.

This blurb article was published on behalf of Meanwhile Creative, a leading office, desk and studio space provider with offerings in Bristol and Cardiff.

David @e1

David is a head mortgage advisor and E1 and regularly posts useful information within the lending sector.