FAQ's

A commercial mortgage is a loan secured against a property that is used for business purposes. This includes offices, warehouses, retail units, and other commercial premises. Unlike residential mortgages, they are assessed based on the business’s financial health and the potential of the property.

A business mortgage works similarly to a residential mortgage, but it's tailored to commercial borrowers. You borrow a sum to buy or refinance a commercial property, and repay it over an agreed term, usually with fixed or variable interest rates.

You can apply for a commercial property mortgage if you are: A limited company A sole trader or partnership A landlord investing in business premises A trading business owner buying property for your own operations Lenders will assess your business’s income, credit history, and the viability of the property.

Most commercial mortgage lenders require a deposit between 25% and 40%. The exact percentage depends on your financial position, the property's location, and your business type.

Your commercial property loan amount depends on your business income, the value of the property, and your deposit. Most lenders offer up to 75% Loan-to-Value (LTV), and loans can range from £100,000 to several million pounds.

Commercial mortgage interest rates vary by lender and can be either fixed or variable. Factors influencing the rate include: The loan amount and term Business creditworthiness Property type and location Current base interest rates

Commercial loan terms typically range from 3 to 25 years. Some lenders offer interest-only options, especially for investors who plan to refinance or sell in the future.

Commercial mortgages are usually not regulated by the Financial Conduct Authority (FCA), unless more than 40% of the property is used for residential purposes. It’s important to work with a reputable broker to ensure you understand the risks.