Commercial Mortgages

Also sometimes known as a Business mortgage.

The commercial mortgage is used as a medium to long term loan to fund the purchase of business premises or to buy an existing business. For a more significant amount, the lender will need security so as to reduce risk. 

FAQ’s

Also sometimes known as a Business mortgage, the commercial mortgage is used as a medium to long term loan to fund the purchase of business premises or to buy an existing business. For a more significant amount, the lender will need security so as to reduce risk. 

Whereby a residential mortgage would last for perhaps 25 years, a commercial mortgage is usually repaid over a shorter period. This is less risk for the lender and means they get back higher repayments each month. You can usually find a 70-75% mortgage too. Talk to us and let’s get our heads together. We are whole of market advisers for first charge lending, so can source the best mortgage for you and make sure you have the best chance at success. 

A Commercial Mortgage:

  • Doesn’t have a fixed rate of interest. 
  • Will probably attract a higher rate of interest due to the high-risk nature. 
  • Tend to offer better interest rates versus a business loan as the property provides collateral.
  • The interest on your commercial mortgage is tax-deductible. 
  • You can still apply for a commercial mortgage, even with a bad credit rating. But, due to the extra risk, lenders will charge a higher rate of interest. 
  • The property is used as collateral against the loan, so if anything goes pear-shaped and you don’t make your repayments, you’re likely to lose your property. 
  • With a commercial mortgage, the deposits are larger than a residential mortgage, so be sure you’re able to afford both the deposit and the repayments.