The advantages of an owner-occupier mortgage

There are many ways of investing in commercial property. Enness frequently works with clients who are looking to purchase a commercial property to operate their business from; this is known as an ‘owner-occupier mortgage’. If you’re currently considering purchasing commercial property as a premise for your business, we’ve outlined the main advantages of an owner-occupier mortgage to help you decide.

What are the advantages of an owner-occupier mortgage?

There are a variety of advantages to becoming an owner-occupier. One of the obvious benefits is that this will give you security in your business premises; although there are sometimes rules in place giving businesses the option to renew their lease, this is not true across the board, and you may not have any security when your current arrangement comes to an end. As a renter, you may also be subject to rent hikes from your landlord.

Being an owner-occupier also represents an investment, as you increase your equity in an investment as opposed to sinking rent into a property and never seeing any return. Hopefully over a long-term period, your property’s value would also rise. In this respect, an owner-occupier commercial mortgage shares many of the benefits of a residential mortgage.

How can I secure an owner-occupier mortgage?

Unfortunately, securing a commercial mortgage is generally a more complicated process than arranging a residential mortgage. There are many more variables for lenders to consider, and you’ll need to prepare carefully before you can even think about submitting an application. Your business plan is essential in this instance, and you’ll need to be able to clearly show either your historical accounts or your projected earnings.

Dealing with these nuances is where Enness can add real value to your transaction; with 20 years of commercial finance experience in the Enness Commercial team, we have a fantastic working knowledge of what you can expect to achieve and how you will need to approach this. Contact our team for a further discussion if you’re currently looking to secure an owner-occupier mortgage for your business.



As for the mortgage – 2.99% fixed for 3 years, interest only with a £2,000 fee. The mortgage was formally agreed within 3 days of receiving the full application. Including valuation and legals we completed the case in 4 weeks.

Regarding high net worth mortgages ‘affordability’ for high net worth individuals, non UK residents and business owners is tough – especially over £1m. We  clarify the situation and make the lender fully aware of the situation making affordability less contentious, especially in light of the under utilised but fully available HNW exemptions.

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