Commercial Mortgages

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Commercial Mortgages

WE HAVE EXTENSIVE EXPERIENCE IN SOURCING COMMERCIAL FINANCE FOR PROPERTY & ASSET TRANSACTIONS IN THE UK

Commercial mortgages are loans that are secured by a commercial property or multiple commercial properties. They are specifically designed for businesses or property investors who require finance to purchase or refinance property. Unlike residential mortgages, commercial mortgages have different underwriting criteria, longer loan terms, and usually require higher down payments. 

 

Commercial mortgages come in several forms, including fixed-rate mortgages, adjustable-rate mortgages, balloon mortgages, and interest-only mortgages. The interest rates on commercial mortgages are typically higher than residential mortgages since commercial properties usually pose a higher risk due to market volatility and uncertain cash flows.

 

Commercial mortgages are typically used to finance the purchase or refinance of commercial properties such as retail stores, restaurants, offices, or warehouses. Compared to other types of financing, commercial mortgages offer relatively low-interest rates, longer loan terms, and flexible payment options.

As a specialist commercial finance broker, we provide high-quality commercial finance solutions for our clients.

  • Market-leading rates for short-term finance & long-term commercial mortgages
  • Funding solutions for property, large machine & asset purchases or refinance
  • Up to 75% Loan To Value (up to 80% for select sectors)
  • From £50,000 to £25 million
  • Terms from 3 months to 30 years
  • Interest roll-up options
  • Same-day agreement in principle
  • We can accept applications from individuals, limited companies, SPVs and offshore structures
  • We are independent and have strong relationships with many high street commercial lenders as well as private banks, wealth managers and specialist lenders that are not accessible by individual customer approach
  • We can source cost-effective business loans and merchant cash advances to help businesses with cash flow
  • Bridging finance for business purposes
  • Business finance for residential, commercial and mixed-use, including retail outlets, restaurants, cafes, guest houses and B&Bs, Airbnb businesses, offices, warehouses, industrial units, factories, HMOs, nursing and care homes, investment properties, land development and buy-to-let property (portfolios and limited companies welcome), and working capital for business expansion and VAT loans

Finance FAQs

See below some common questions and answers below, or call us at 03332 423 447

  • What types of commercial properties qualify for financing?

    Most types of commercial properties such as offices, warehouses, retail buildings, and multifamily units can be financed, as long as they generate reliable income.

  • How does the loan-to-value ratio (LTV) affect financing?

    LTV ratio directly impacts how much finance a client can secure. Higher LTV ratios indicate higher risk for lenders, which usually translates to higher interest rates.

  • How is the interest rate calculated for commercial property loans?

    The interest rate for commercial property loans is calculated based on several factors, including the borrower’s creditworthiness, the property’s location and condition, loan term, and the size of down payment.

  • How much down payment is required for commercial property financing?

    Some lenders may require down payments as low as 10%, while others may require up to 40%. The down payment amount required depends on the type of property and the borrower's creditworthiness

  • What are the advantages of using a commercial property finance broker?

    A commercial property finance broker can help borrowers navigate the complex process of securing finance, negotiate more favourable loan terms, access a wider range of lenders and provide expertise on the market.

  • What are the typical loan terms for commercial property loans?

    The loan term for commercial property loans can range from one year (short-term) to 30 years (long-term). However, most commercial property loans range between 5-15 years.

  • What are the usual fees associated with commercial property loans?

    Fees include origination fees, appraisal fees, credit report fees, and legal fees, and other costs that vary depends on the type of loan, terms, and location.

  • Can first-time buyers get commercial property loans?

    Yes, first-time buyers can get commercial property loans, but some conditions might apply, such as higher interest rates, bigger down payments or lower LTV ratios.

  • What documentation is required to apply for commercial property financing?

    Generally, lenders require proof of income, business or personal tax returns, a detailed financial statement, and property details such as title deeds, leasehold agreements, and appraisal reports.

  • How long does it take to secure commercial property financing?

    Depending on the lender, securing commercial property financing can take anywhere from 2-4 weeks to several months.