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Commercial Finance

What are Commercial Mortgages?

There are a number of lenders in the market that provide commercial mortgages. We have access to High street, challenger banks and specialist mortgage lenders.

Commercial mortgages can be broken down into two types of mortgages:

Owner Occupier – is where you are looking to purchase the property where you trade from or you are looking for a new property to trade your business from. This can be a semi commercial or fully commercial property, warehouse or light and heavy industrial unit

Commercial Investment – is where you are looking to purchase a new property as an investment to earn a rental income from. The sectors include Commercial, industrial, warehouses, student accommodation, HMO blocks and BTL Portfolios.

How does a commercial mortgage work?

When it comes to a commercial mortgage the lenders available would depend on the individual circumstances  of your case and every application is submitted to the lender in order to understand the deposit required and interest rate available

The term can range from 2 to 25 years either on a repayment or interest-only basis

 

Who uses a commercial mortgage?

Commercial mortgages are aimed at businesses that are looking to purchase a property or to release value from an existing building which could then be invested into the business. Below are some of the sectors we come across:

Business – single office units, office blocks, serviced offices, business parks

Retail – shops, single retail units, shopping parades & malls, retail parks

Industry – industrial units & parks, warehouses, factories

Leisure – restaurants, pubs, cafes, hotels

Health – care homes, nursing homes, doctor surgeries, dental practices, vets, opticians 

Education – schools, day-care nurseries, colleges.

What paperwork do I need to produce for a commercial mortgage?

When applying for a commercial mortgage, the usual documents needed will include:

Last 2 Years Profit and Loss Statements/Accounts for the business

2 Years of SA302’s and Tax Year Overview,

Statement of assets, liabilities, income and expenditure

Details of the Property

Is a commercial mortgage the right choice for my business?

If you are currently renting a property where you trade from and are looking to purchase your own property then a commercial mortgage is the right thing for your business or if you are looking to release the value of your existing property then a commercial mortgage is also right for you and your business.

If you have already found your new building but can’t sell your current one then a commercial mortgage is not right for you but there may be other finance options.