What are They?
Commercial Mortgages are simply mortgage loans secured on any type of commercial property, e.g. office buildings, industrial units, apartment blocks, land, etc. They can be used to buy, refinance or redevelop commercial property, and are usually longer term loans (up to 25 years). Broadly similar to residential mortgages, but with the difference that they are invariably unregulated, secured on commercial property and considered by lenders to be higher risk than residential, with correspondingly higher interest rates & usually tighter underwriting.
Property Types Suitable For Commercial Mortgages (not exclusive)
- Industrial units, Factories and Warehousing
- Office Premises
- Retail & Semi-retail units
- Garages & Servicing centres
- Hotels & Guesthouses
- GP Surgeries, Dentists, Pharmacies, Vets
- BTL (Buy to Let) & Residential portfolios
- Farms & Agricultural Land
- Development Land
- Restaurants & Bars
How competitive a deal you get will depend on the strength of your business, the type & location of property, the size of the loan/transaction, and the LTV (Loan to Value) you are seeking. Generally the more secure the lender feels, the better the terms.
We have been helping our business customers with their property financing needs for 20+ years and have developed strong ties with a broad panel of lenders & a keen awareness of the options available within a complex market. Whatever you are looking for, we will go the extra mile to try and secure you the best terms for your project.
- Security: 1st legal charge over property
- Arrangement fees: 1-3%
- Other fees: legal & valuation fees
- Rates: from 2% over bank base rate
- Min/Max loan: £100,000 to £20 million
- Max LTV (Loan to Value): 80%
- Loan term: 5 -25 years
- Personal guarantees: sometimes required
- Loan purpose: acquire, refinance or redevelop property
- Pay outs: 1-3 months