Commercial finance
Financial solutions for purchasing or refinancing commercial property.
Commercial Mortgage is a loan to buy commercial property for business or investment
purposes.
Who can get it?
- Entrepreneurs looking to buy premises for their business
- Investors purchasing commercial property to rent out
- Both experienced and new borrowers without prior experience
What affects loan approval?
- Your credit history
- Deposit size (minimum 25% of the property value)
- Market value of the property
Key terms
- Deposit: 25–40% of property value
- Term: from 3 to 25 years
- Loan amount: from £30,000, no upper limit, depending on income and loan-to-value (LTV) ratio
- Interest rates: fixed or variable (variable rates usually offered by large banks, fixed rates by newer banks)
Why get a Commercial Mortgage?
- To buy or refinance business premises
- To expand business by acquiring new properties
- To raise additional capital
- To relocate to new commercial premises with spread-out costs
Features
- You can buy property with both commercial and residential parts (up to 40% residential area)
- Loan can be taken out through a limited company
- For medical facilities, deposit can be lower or absent
Difference from other mortgages
Type
Purpose
Users
Residential Mortgage
Residential property for living
Homeowners
Buy to Let Mortgage
Residential property for rental
Investors, landlords
Commercial Mortgage
Commercial property for business
Entrepreneurs, business
investors