Commercial mortgages

Commercial mortgages are used to purchase or refinance property that is used primarily for commercial or business purposes.

While commercial mortgages share some similarities with residential mortgages, they are distinct because commercial mortgages are typically taken out in the name of a business or commercial property investor and the security is usually a commercial or business property such as a Shops, Offices, Bed and Breakfast/Guest House, Warehouse etc. The property could be used solely for commercial purpose or have a mixture of commercial and residential use.

Some examples of common uses and types of commercial include:

Business Owner-Occupiers

Where the commercial loan is taken on a property that the borrower runs their business from.

Investment Finance

Where the commercial loan is taken on a property as an investment that will generate demonstrable returns, such as an office complex or retail shops sublet to individual businesses.

Bridging Finance

Short term loan that can be used to meet a range of financial requirements. Bridging loans can help the borrower to address constraints of time and liquidity and afford the borrower any required accommodation to make arrangements necessary to meet the criteria of mainstream lenders.

Development Finance

Short term loan that’s specifically for building new properties (houses, block of flats etc) or making substantial changes to existing properties (conversions, Multi-Units, etc). Development finance is normally for a term covering the period of development and arranged prior to commencement or as Mezzanine finance at a later stage of development. Mezzanine finance is subordinate to senior facility loans.

Commercial Property examples include:

  • Shops /Retail
  • Offices / Office Complex
  • Care / Nursing homes
  • Professional practices (Dentist, Doctors surgeries etc)
  • Multi-Unit Property (House or Office block converted to flats)
  • Factories and Warehouses
  • House in Multiple Occupation (HMO)
  • Investment Properties
  • Hotels, B&B’s, Pubs, Restaurants and Cafes

Commercial mortgages are often tailored to specific requirements and the loan term and interest rate are defined by various factors such as Loan-to-value (LTV), Property type, Loan size, Income cover, Repayment terms and so on.

Through access to a large panel of lenders and a network of experts, we can advise and assist with getting the right commercial finance for you.


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