Commercial Mortgages

The process for a commercial mortgage usually takes between four to eight weeks, depending on the complexity of the purchase.

No, residential mortgages cannot be used for commercial properties. They are strictly for residential purposes.

A commercial loan typically does not impact obtaining a personal mortgage, especially if your business is incorporated as a limited company. Lenders will ensure your business income can support your mortgage commitments.

Yes, start-up businesses can qualify for commercial mortgages. The key is demonstrating the business’s potential profitability to afford the loan.

Yes, purchasing purely commercial properties like shops requires a commercial mortgage.

Stamp duty applies to non-residential and mixed-use properties, including those with both residential and commercial elements.

Commercial mortgages come into play for businesses looking to borrow significant amounts, typically over £25,000, using business property as collateral. They offer a medium to long-term loan solution.

Alternatives include bridging loans for short-term needs, short-term loans for smaller amounts, and personal loans for amounts up to £25,000.

Commercial mortgages are similar to residential mortgages but are used to purchase commercial properties. The repayment terms and conditions mimic those of residential mortgages, with the business property serving as the security.

There are two primary types:

• Owner-occupier mortgages for business premises
• Commercial investment mortgages for properties intended for leasing.

Fees include arrangement fees, valuation fees, legal fees for both your and the lender’s legal representation, and broker fees.

Interest is typically variable, quoted as a percentage over the base rate.

Fixed-rate options are available for smaller loans.

Criteria include assessing your company’s cash flow, projected income, ability to pay the deposit, and the rental income’s impact on cash flow.

Non-residential properties include offices, retail units, industrial spaces, and mixed-use properties, among others.

Lenders range from high street banks offering competitive rates to challenger banks and niche lenders willing to accommodate unique borrowing needs.

This mortgage is for mixed-use properties, like a shop with a residential flat above, requiring a unique mortgage product.

Yes, commercial mortgages are available for land purchases, with or without planning permission.

Factors include business trading duration, profitability, debt level, credit history, personal guarantees, loan size, loan-to-value ratio, property use, and lender-specific criteria.

Commercial mortgages are for properties used for business purposes, while residential mortgages are for properties used as homes.