Commercial finance is a broad term covering a variety of lending solutions and commercial finance for landlords and developers is an area that HFA Bridging & commercial specialise in. The main options include:
1. Commercial Mortgages
For landlords purchasing premises for their own business or developers looking to hold a property long term, a commercial mortgage is the most common solution. These are structured similarly to residential mortgages but tailored to business needs.
2. Commercial Investment Mortgages
If the aim is to purchase a commercial property to let out, such as offices, retail units, or warehouses. An investment mortgage may be more suitable. Lenders focus on rental income and tenant strength when assessing these applications.
3. Residential Investment Mortgages
For landlords expanding their buy-to-let portfolios, residential investment mortgages provide a route to purchase or refinance residential rental properties.
4. Bridging Loans
Designed for short-term needs, bridging loans are invaluable for:
- Auction purchases (where completion is required quickly).
- Properties that need refurbishment before being mortgageable.
- Developers requiring funds between selling one asset and acquiring the next.
- Unlocking equity from one property to fund another deal.
5. Refurbishment & Development Finance
When a property needs upgrading, refurbishment finance provides the capital to complete works. For larger-scale projects, such as conversions, new builds, or extensive redevelopments. Development finance offers staged drawdowns to fund construction.
6. Cashflow & Asset Finance
Beyond property purchases, landlords and developers may also use cashflow finance (loans, invoice finance, overdrafts) or asset finance (funding for equipment or vehicles) to keep projects running smoothly.
Do You Need to Be a Limited Company to Access Finance?
A common misconception is that commercial finance is only available to limited companies. While many lenders do prefer working with incorporated businesses, sole trader landlords and partnerships can still access finance.
Here’s how it works:
- Limited Companies often benefit from a wider choice of lenders and potential tax advantages.
- Sole Traders/Individuals can still apply for bridging loans, buy-to-let mortgages and in some cases commercial mortgages, provided the lending purpose is clear and repayment terms are sustainable.
At HFA Bridging & Commercial, we regularly arrange finance for both incorporated businesses and individuals. The right structure depends on your circumstances, portfolio plans and tax position. Something we always discuss with clients at the outset.
When Should You Start Planning Finance for a New Property?
The short answer: as early as possible.
Too often, landlords and developers start thinking about finance only once a property is secured, leading to unnecessary delays or missed opportunities. Instead, we recommend:
- Pre-auction planning: If you’re bidding at auction, have a bridging loan agreement in principle before the day. This ensures you can complete within the typical 28-day timeframe.
- Before refurbishment: Secure funding before works begin. Most lenders won’t provide finance midway through a project without clear plans in place.
- Portfolio growth: If you plan to acquire multiple properties, speak to a broker early to structure your portfolio financing strategy. This prevents you from becoming “stuck” with short-term products that limit future borrowing capacity.
The earlier finance is planned, the more options are available and the more leverage you’ll have to negotiate the right terms.
Expert Support for Landlords and Developers
At HFA Bridging & Commercial, we work closely with landlords and developers across Wigan and the wider UK, helping them secure tailored finance for every stage of their property journey. Whether you’re buying your first auction property, refinancing a growing portfolio, or planning a large-scale development, we’ll identify the right funding structure and manage the process from start to finish.
Ready to Take the Next Step?
Don’t wait until the last minute to arrange finance. If you’re planning to purchase, develop, or expand your portfolio, speak to HFA Bridging & Commercial today. Our expertise as trusted commercial finance brokers in Wigan ensures you’ll have the right funding in place, on time and on the best terms available.
