Commercial Mortgages include finance for your business premises or finance for a commercial investment property. We have the knowledge, contacts and experience to provide you with specialist advice and support in arranging the best commercial finance deal. Lenders will look at number of areas when considering whether they will provide finance for a particular proposal or not. The strength of a proposal depended largely on the following factors
- Location of the property
- Physical Condition of the asset
- Covenant (tenant) strength & Lease terms
- Credit worthiness of the borrower
- Market leading rates
- Up to 100% LTV (with additional security)
- Loans from £20,000 with no maximum limit
- Interest only options
- Fixed and variable rates
- Adverse credit options
- Lending in England, Wales and Northern Ireland
AREAS WE CAN HELP
- Multiple units, Retail Units, Industrial Units
- Mixed use properties, Single freehold units
- Houses in Multiple Occupation (HMO)
- Warehouses & Offices
- Care and Nursing Homes
- Restaurants and Public Houses
- Hotels and Guest Houses
Frequently Asked Question
We are happy to answer your queries on the phone or in person but here are answers to some of the most frequently asked questions we receive on commercial mortgages.
Commercial Mortgage loans starts from £20,000 with no maximum limit.
Majority of the lenders are comfortable in lending up to 70% – 80% but up to 100% can be obtained with additional security.
Unlike most buy-to-let mortgages where you receive a standard mortgage rate, rates for commercial mortgages are individually priced to match the strength of the proposal. There are various factors which lenders keep into account while calculating the interest rate. Not limited to but generally these will include:
- Loan To Value Ratio
- Location and physical condition of the property.
- Covenant (tenant) strength – The strength and performance of the business that will rent the property.
- Lease terms – Lease tenure, break in clause etc
- Credit Worthiness of the borrower – Your credit History
- Previous track record, industry sector and the strength and performance of your business or the business you are considering
With this in mind, we will ensure that your proposal is well presented to lenders highlighting all the strengths and secure best possible terms for your commercial mortgage.
Lender arrangement fee: Payable to the commercial mortgage lender for arranging the finance.
Valuation fee: The valuation is done a surveyor who is on the panel of the bank. The fee is usually paid on submission of the application or once the facility has been agreed in principle. Valuations on commercial properties are usually more expensive than valuations for residential properties.
Legal fees: This fee is paid to a solicitor for doing the legal work for yourself and possibly your lender. Fees are usually higher than those for a residential property because of the nature and complexity of titles and covenants.
At the outset, we will only collect basic information to understand your mortgage requirement. The information we take at the stage will circle around details of the proposed security (property), your loan requirements and income form the property to calculate serviceability of the loan. This will help us ascertain whether we can help you with your borrowing requirements or not. Once we have established that, we will ask you to complete a commercial mortgage application and give you list of documents required specific to your case. Normally, we expect applicants to provide the following documents:
- Identification and Address Proof
- Proof of Income
- Asset & Liability Statement
- Certified financial accounts for either the existing trading business or the target business.
- Details of the tenant and lease (for a commercial investment mortgage)
Contact us here or by phone to find out more about Commercial Mortgages. We will be happy to arrange a free consultation with you so that we can start working towards achieving the best possible mortgage solution for you today.
Commercial property is, generally speaking, property used for the sole purpose of carrying out or performing business activity. This would exclude residential property and/or primary industries such as mining and agriculture. The three main types of commercial property are retail (including supermarkets, shopping centres and retail warehouses); offices (including business parks); and industrial property (including factories and warehouses). Also included to a lesser degree is leisure property (including hotels, bars and restaurants) and health care property (including hospitals, doctors surgeries and care homes)