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Commercial Mortgages


Commercial mortgages can be used on a wide range of property types, securing a loan to buy a:
 

Hotel and Public House

Bed and Breakfast / Guest House

Office Premises / Retail Unit (Shops)

Factory or Warehouse

Nursing and Care Home

HMO Mortgage

Investment Properties and Portfolio Mortgages

Buy to Let

Complex Mortgages


If you are looking to purchase, remortgage or invest in commercial property we are the team of lending experts to help you with any form of Commercial Mortgages. Regardless of your situation or the scenario you are in, just give us a call, and we’ll help find the right solutions for you.


What is a Commercial Mortgage?
 

Commercial Mortgages, also known as Business Mortgages, are for those who are purchasing or remortgaging property that will be used as a commercial or business premises. This type of business financing is also available on mixed-use properties, such as those that are part residential and part commercial.


What Are The Terms For A Commercial Mortgage?
 

While terms for the repayments on your mortgage vary from lender to lender, some common terms include:

  • Some repayment plans have three-year terms
  • Others may offer a longer term of 25 years
  • The industry average is around 15 years.


The terms you can expect to see are often determined by the value and/or size of your property or land, as well as the available deposit you have available. One of the tricky aspects of this type of mortgage is watching out for complex clauses or directives which can bring you a greater risk.

To make sure you’re getting the right deal for you, and to ensure you fully understand the mortgage that you take out, give us a call, our team is always on hand to discuss any financial solutions you may be considering.

 

deposit graphic on green background


How Much Is The Deposit For A Commercial Mortgage?
 

The typical deposit you can expect to pay for a Commercial Mortgage is around 30% of the property or land’s value.


What Fees Would I Need To Pay With A Commercial Mortgage? 
 

When applying for a typical Commercial Mortgage, you will need to consider the cost of:

  • Legal costs
  • The costs of any required surveys 
  • Insurance policies
  • Loan arrangement fees
  • Valuation fees


What Is A Part-Commercial Mortgage?
 

A part-commercial mortgage for a property that is mixed-use. So for property which is half business and half residential, such as flats above a shop or pub, or part-converted offices.

This type of property often does not fall within the terms of a standard or commercial mortgage and so carry their own.


The Current State Of Commercial Lending
 

As a standard, you’ll need to be able to fund at least 25% of the property’s value, as commercial lending has suffered badly since the global financial crisis. To meet this funding, however, additional security can be used to increase the lending figure.

High Street banks are now being more restrictive with their lending criteria and lenders will only provide up to 75% loan to value (LTV). This has resulted in many SMEs not being able to refinance existing properties or purchase new ones, effectively stifling the growth or survival of some of these businesses.


What We Offer
 

As an independent commercial broker, we have partnerships already in place with a number of commercial loan providers, both on and off the High Street.

You can therefore use our skills and expertise to assess your needs and identify the right lending solution very quickly. Any applicable fees will be discussed and agreed upon at the outset of the application and the rate you pay will be driven by the overall strength of your application.

All enquiries are treated on a no-obligation basis. So, if you would like to enquire about a commercial lending facility don’t delay, speak to one of our friendly experts today on 01738 583008.

Alternatively, please complete the loan enquiry form and we will email you some background forms to complete, or we can call you back at a time convenient to you.

Introductions

If you are not a direct client looking for a lending solution, perhaps you are interested in introducing business to us? If so, please call now on 01738 583008 for more details, or follow the Introducers Link.


Regulated service

The Lending Channel are fully authorised and regulated by the Financial Conduct Authority (FCA) and are an accredited member of the National Association of Commercial Finance Brokers (NACFB) – the national trade body for brokers who arrange finance for businesses. It operates a professional Code of Practice, giving you complete peace of mind.

The Lending Channel are members of the National Association of Commercial Finance Brokers (NACFB).
2/1 King James VI Business Centre, Friarton Road, Perth, PH2 8DY
Tel: 01738 583008 | Fax: 01738 500402

The Lending Channel are authorised and regulated by the Financial Conduct Authority.
Company number SC334818
Data Protection Act: Z2030159

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT

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