Investment mortgages are for the purchase of a commercial or semi-commercial property for letting on commercial terms. Investment mortgages can include properties such as shops, offices or a buy-to-let property portfolio. Unlike standard mortgages for residential properties, where the loan is dependent on the personal earning capacity of the borrower, a commercial investment mortgage lender is interested in the income that the property will generate in order to repay the loan.
Commercial investment mortgage lenders consider the market potential of the property i.e. the type and location of the property, the lease terms and the quality of the tenant or the rental demand for the property in order to prove that the investment is going to produce a suitable income in order to repay the mortgage.
This means that there is no limit to the number of investment mortgages that one individual can hold, provided each investment property offers a suitable return, the lender is likely to put up the necessary cash regardless of the number of investment mortgages the borrower may have.
