Commercial Finance

The Financial Conduct Authority do not regulate some Buy to Let and Commercial Mortgages.
Your property may be repossessed if you do not keep up repayments on your mortgage

Commercial Finance enquiries will be referred to a master broker

What is Commercial Finance?

Commercial finance is a loan available to new and established business owners. A commercial mortgage can assist in the purchase of a property that is going to be used primarily for business use or trade.

When a commercial mortgage is required:

Compared to a normal loan which is unsecured, commercial mortgages can offer a higher level of borrowing because they are secured against an asset. This allows business owners the option to purchase new premises or expand their business. Typically, the commercial premises would be used as security against the level of borrowing and could be over a term of up to 25 years

Higher interest rates may be charged by commercial lenders due to their specialist criteria and the rates are based on the products available and the strength of the proposal at the time of an application. Commercial mortgages are assessed on a case by case basis.

Commercial properties considered:

  • Offices
  • Industrial Units
  • Retail/Shops
  • Retail/Shops with residential premises above
  • Investment Properties
  • Land Purchase
  • Developments

Considering a commercial mortgage?

Lenders will assess commercial mortgages on a case by case basis, ensuring your business is running smoothly and efficiently will help benefit an application. Business experience and trading history will identify the business’s strengths, providing evidence of its sustainability for lending purposes.

It’s important to remember that the security could be the property you are looking to purchase and this would be at risk should you fail to keep up with your monthly payments.

Top tips to consider when applying for a commercial mortgage:

  • Commercial mortgages are generally more expensive compared to residential or buy to let mortgages, so it is important to consider additional fees e.g. valuation fees, lender arrangement fees, legal fees
  • Experience in business trading and growth are extremely important when considering a proposal. Identifying key strengths and business development will help to support an application. It’s important to remember that providers may not lend to business who show a loss in their accounts or have poor credit
  • Typically, a deposit of between 30-40% of the value of the property is required to assist with the purchase
  • Additional information will be required to support the commercial mortgage application. Lenders will need to effectively assess past, present and future circumstances of the business
  • It is important to discuss potential options with an expert to help identify your requirements and what is available