COMMERCIAL
A commercial mortgage is used for buying land or property for commercial use, for example shops, restaurants, offices, hotels, warehouses and industrial units. Just like residential mortgages, money is borrowed from a lender and secured against a property. A commercial mortgage can help you build your business by buying a business premises, securing land for development or developing an owner-occupied building. You can also apply for a commercial buy to let mortgage if you are adding to a portfolio of properties as part of your business. Lenders will usually only lend you up to 70% of the property’s value, which means you have to supply the rest of the cash to make up the property’s value. This can often be a large sum so it’s crucial that you go into the process with your eyes open.
Commercial Mortgages Explained
Commercial mortgage loans can broadly be divided into two categories. The first is an owner-occupier mortgage, which is used to purchase a property that will serve as a trading premise for your company, for example a garage to use for a tyre fitting company or a high street premises within which to open a shop. The second type is a commercial investment mortgage, which is typically used to invest in commercial property that you might be planning to let out, for example an office building with several floors or an industrial unit that may house several businesses. There is a wide range of property types that you may be able to get a business mortgage on, including leisure properties such as pubs and restaurants, retain commercial investment properties such as retail parks, office properties, industrial properties, care homes, professional properties such as doctor’s surgeries or veterinary practices, and agricultural properties like farms. You can also get commercial properties for buildings with a residential element, such as a shop with a flat above. Mortgage rates vary depending on the type of property you wish to purchase, and which lender you approach for a loan.
Use an Expert Commercial Mortgage Broker
Using an expert commercial mortgage broker like us will ensure you get the deal that is best suited to your circumstances. Though some high street lenders offer commercial mortgages, there are many more out there that aren’t available on the high street, for example through private banks and centralised lenders. A specialised broker like us can find more competitive rates and find you a deal that’s really worthwhile. Due to our expertise in this area we can also give advice and guidance on getting a commercial bridging mortgage, a commercial buy to let mortgage and how to get a commercial remortgage deal.
Get in touch today and find out how we can help you find a great deal on commercial mortgages.