COMMERCIAL

There are two types of commercial mortgages – an owner occupier mortgage for trading premises and a commercial investment mortgage for those looking to invest in commercial property. Our team of specialist brokers can help you source both.

Commercial investment mortgages are specifically designed for individuals or businesses looking to purchase a property as a business asset, to profit from the rent as well as from capital appreciation.

Some of the more lucrative commercial investments include shopping centres, industrial estates, agricultural land and office buildings. From a lender’s point of view, there are two following key factors to consider;

The calibre of the tenant- This determines the yield and thus the value of the asset.

The borrower’s security  – Lenders will usually insist on a signed personal guarantee on any loans, which gives the bank permission to go after the borrower’s personal assets if the business fails to pay back the loan.

Rates for business mortgages are dependent on experience, track record, industry sector as well as the strength and performance of your business or the business you are considering.

Competitive terms are available for business owners although they must be prepared to move their business banking to achieve the best terms available.

Commercial mortgages from specialist lenders tend to be priced higher, however in return they don’t expect you to take out their business banking products.

Commercial mortgages are typically set at an interest rate above the Bank of England’s base rate, and loans are generally available for up to 75% Loan-To-Value therefore, you will be expected to provide a deposit of 25%.

If you would like to speak to a consultant specialising in commercial mortgages, then please call us on 020 3972 9333.