Owner-occupier vs investment commercial mortgages: the underwriting split
How owner-occupier and commercial investment mortgages differ in underwriting, lender pool and pricing across the Brighton market. EBITDA cover at 1.3 to 1.5x versus ICR cover at 140 to 160% stressed. Two-year clean accounts versus tenant covenant and lease length. Active BN1 / BN2 / BN3 sub-markets for each product type and the named lender desks that compete on Brighton owner-occupier and investment deals.
This piece is in preparation.
The outline below is the planned structure for the full piece. Send a topic suggestion or a follow-up question to enquiries@commercialmortgagesbrighton.co.uk and we will work it in.
Coming soon, comparison guide between owner-occupier and commercial investment mortgages in Brighton.
Outline
- The fundamental underwriting split: EBITDA versus ICR
- Owner-occupier: 1.3 to 1.5x EBITDA cover, 2 years' accounts
- Investment: 140 to 160% ICR stressed, tenant covenant
- Lender pool by product
- Active Brighton sub-markets for each
- Worked example: BN3 Hove dental practice owner-occupier
- Worked example: BN1 North Laine retail investment
- Tax treatment, SPV structure, personal guarantee differences
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