If you need a mortgage or finance for commercial or business reasons then speak with our approved finance brokers for a no obligation quote and friendly advice. They can search the market place to compare and see which lenders are offering the cheapest finance deals.
If you’re considering applying for a commercial mortgage, speak to Lending Expert today for expert impartial advice. Whether you want to buy a new property or release equity from an existing property, a commercial mortgage could be the right step for you to take. Have a look at our extensive guide on what you’ll need to know before taking out a commercial mortgage.
A commercial mortgage is a type of loan available for businesses that want to borrow an amount over £25,000. This type of mortgage is secured against your business premises. Commercial mortgages can be used for: buying property, investment finance, property development, refurbishing owner-occupied business premises, and buying motor vehicles, machinery, or other equipment.
A commercial mortgage works by having no set rates. This means that every application that is submitted is reviewed thoroughly and considered on an independent basis. This involves calculating the risk of each application to the lender.
Typically, a commercial mortgage will last from around 3 to 25 years. If you aren’t looking for a loan as long-term as this, you could consider bridging loans or development loans.
There are two main types of commercial mortgage:
You can get a commercial mortgage by applying online today with Lending Expert. There are some things that you should have ready to make the process as smooth and quick as possible. This includes:
Yes, you can still get a commercial mortgage if you have bad credit. However, it may be harder for those to acquire such a mortgage compared to those with good credit. Our expert advisors can help find a commercial mortgage that will work for you.
The reason why bad credit can make it harder to get a commercial mortgage is that you are deemed to be a higher risk to lenders than other applicants with better credit.
There are several advantages of commercial mortgages:
There are also some disadvantages of commercial mortgages that you should be aware of, including:
No, residential mortgages are not the same as commercial mortgages, despite being for similar purposes. They are both taken out to buy property or land, but there are some significant differences between the two mortgage types, including:
Value: The value of the land or property for commercial mortgages tends to be significantly larger than the value of the property or land with residential mortgages.
Risk: There are higher risks involved for lenders with commercial mortgages than residential mortgages. As such, commercial mortgage lenders usually require a large deposit of between 25% and 50%. This means you will be looking for mortgages with a maximum loan to value ratio of 75% or lower.
Mortgage Term: Residential mortgages tend to have a 25 to 30-year term as standard. A mortgage on a commercial property is typically much shorter than this. The term for commercial properties can be anything between 1 and 25 years, although many are capped at 15 years.
A commercial mortgage is right for your business if you are looking to purchase your own property, or release the value of your existing property. However, if you have found a new building but you cannot sell your current building, a commercial mortgage is not right for you. In this case, a bridging loan would be for you.
If you’re in any doubt about which mortgage would be the best for you and your business, speak to our expert advisors about your options.