Commercial Mortgages

Get a Quote for Mortgages on Offices, Buildings, Retail Premises, Factories and More

What is a commercial mortgage?

A commercial mortgage works in a very similar way to the typical residential mortgages, however with this type of loan it enables you to buy one or more properties for the intention of using it for business purposes, or in order to rent out.

How do commercial mortgages work?

If you get a commercial mortgage, the loan will be secured against the property. The loan will be up to 75% of the property’s value. Depending on the lender, you may be able to use the equity that you have in another property to cover the remaining 25% as a deposit.

What properties can I buy with a commercial mortgage?

It is possible to get this type of funding to purchase:

  • Shops
  • Retail premises
  • Commercial properties
  • Residential buy to let
  • Factories
  • Warehouses
  • Professional practices
  • Farms
  • Land
  • Pubs
  • Hotels
  • Offices

Commercial mortgage FAQs

How long do I have to pay the commercial mortgage? This will depend on the mortgage provider, but it can be a term of anything from a month, all the way  up to 30 years.

How much can I borrow with a commercial mortgage? Typically lenders will allow you to borrow anything from a minimum of £50,000 and with some specialist lenders up to £40 million.

What fees do I need to pay for a commercial mortgage? There are a number of different costs you need to take into consideration when taking out a commercial mortgage. These include:

  • Interest rate
  • Valuation fees
  • Arrangement fees

Which companies can get a commercial mortgage? It is possible to get this mortgage in your own name or alternatively if it is held by a:

  • Trust
  • Offshore company
  • Limited company
  • LLP
  • SIPP/SSAS
  • SPV

What is considered in the mortgage application process? The lender will assess you against certain criteria, which will typically include:

  • Your personal finances
  • Your profits
  • Level of affordability
  • The company’s income and assets

Will my tenants finances be considered in the commercial mortgage application process? Yes, potentially, if you intend to buy the property and rent it out to tenants.

Does my company’s credit record matter? Yes, it will be taken into consideration when the lender decides to approve or decline your application.

Are commercial mortgages regulated by the FCA? No, but standard mortgages are.