Transport yard and haulage depot mortgages

An owner-occupier depot mortgage is for a trading transport business buying premises it will operate from itself, not a property you intend to let out. That distinction matters, because owner-occupier lending is assessed on the strength of your business and its ability to service the mortgage from trading profits, rather than purely on rental income. For a haulier, that means your fleet, your contracts and your accounts are central to the case.

The kind of site this finance suits is a working transport base, typically including:

• Hardstanding and secure yard space for parking and manoeuvring HGVs and trailers.
• A workshop or maintenance area for servicing and inspections.
• Offices and welfare facilities for traffic, admin and drivers.
• Fuel storage, wash bays or other operational infrastructure where the site has it.

Whether you are buying the yard you already rent, relocating to a larger site as the fleet grows, or securing a base with the operator licensing you need, the mortgage funds the premises your operation depends on.

A commercial owner-occupier mortgage advances a proportion of the property value or purchase price, and you repay it over a long term, usually on a capital and interest basis so you own the site outright at the end. The property is the main security, supported by the trading performance of your business. Because you occupy and run from the site, lenders treat the mortgage as core business finance rather than an investment loan.

Loan to value on owner-occupier commercial deals typically runs from around 65% up to 75%, so you should plan for a deposit of at least a quarter of the value, plus costs such as legal fees, valuation and stamp duty. Terms commonly run up to 20 to 25 years, which spreads the cost and keeps monthly payments manageable against your trading income. The long term is what makes buying compare well against renting, since your payments are building equity rather than disappearing in rent.

Pricing on an owner-occupier depot mortgage depends on the loan to value, the length of the term, the strength of your accounts and the nature of the site. As a general guide, rates start from around 6%, with the exact figure reflecting how the lender views the risk of your business and the property together. A lower loan to value and strong, consistent trading figures help you towards the better end of the range.

Yards and depots can be more specialised than a standard commercial unit, and a heavily bespoke site can affect how a lender prices and sizes the loan, because it influences resale if things go wrong. On top of the rate, budget for an arrangement fee, valuation and legal costs. Rather than quote a single number that would not fit your deal, we take your figures and the site details, put the case to the lenders on our panel and come back with real terms. Nothing here is financial advice.

Because this is finance for a trading business, lenders weigh your operation as heavily as the bricks and hardstanding. They want to see that the business can comfortably service the mortgage from its profits, so they look at your accounts, your cash flow, your existing finance commitments and the outlook for your contracts. A haulier with steady work, sound management figures and a sensible balance sheet presents a strong case.

They also assess the site itself: its condition, its suitability as a transport base, planning and any environmental considerations that come with a yard, such as fuel storage or wash-off. For operators, the licensing angle matters too, since an operating centre needs the right planning use and authorisation. We help you bring the business and the property sides of the case together, and we work with your accountant and solicitor so the application is properly evidenced from the start. Your solicitor should confirm planning and licensing, as nothing here is legal advice.

Renting a yard keeps you flexible and light on capital, but it leaves your occupancy cost in someone else's hands, exposed to rent reviews and the risk of losing a site your operator licence depends on. Buying fixes your base, converts rent into mortgage payments that build equity, and gives you control over how the site is developed, secured and maintained. For a settled operation with dependable work, ownership often makes strong commercial sense.

It is not the right move for everyone. Buying ties up a deposit and adds a long term commitment, and it suits businesses with the trading stability to carry it and the confidence they will stay put. Where the numbers work, though, owning the base your fleet runs from turns a recurring cost into an appreciating asset the business controls. We will give you an honest view of whether the case stacks up before you commit, rather than pushing you towards a deal that does not fit.

Good yards with the right hardstanding, access and planning are hard to find, so when one comes up you sometimes need to move faster than a term mortgage allows. Short term bridging finance can secure a site quickly, including at auction, while the longer term owner-occupier mortgage is arranged behind it. You complete on the purchase, get your operation onto the site, then refinance onto the mortgage as your exit.

Bridging on a yard or depot purchase typically runs at around 0.75% to 1.1% per month and is designed to be short term, so it needs a clear and realistic exit, which here is the term mortgage or a sale. It costs more per month than a mortgage, so it is a tool for timing rather than long term funding. We can arrange the bridge and the exit finance together, so the two dovetail and you are not left holding expensive short term debt. See our page on bridging for depots for more detail.

To get started, tell us about the site you want to buy, the purchase price or value, the deposit you can put in and a picture of your business, including your trading history and the work your fleet supports. With that we can gauge the likely loan to value, term and rate, tell you honestly whether the deal fits, and put it to the right lenders on our panel.

We are a finance arranger and introducer, not a lender. Commercial lending to limited companies is not regulated by the Financial Conduct Authority. Some agreements, for example certain lending to sole traders or individuals, can be regulated, and we refer those to an appropriately authorised firm. Nothing on this page is financial, tax or legal advice, and you should confirm the planning and licensing position with your own solicitor. When you are ready, contact us and we will get to work on funding your base.