Commercial Mortgages for Business Premises

This is not an exhaustive list, but we can arrange mortgages on Offices, Factories & Warehouses, Hotels and Guest Houses, Pubs and Restaurants, Day Nurseries, Shops & retail premises.

We have access to a wide range of commercial mortgage lenders, with some offering mortgages to Applicants with adverse credit.
Advantages / Disadvantages of a Commercial Mortgage
A Commercial Mortgage can be used for several purposes including:

  • Buying business premises
  • Extending already existing business property
  • Releasing Equity to inject Working Capital into a business

Typical repayment periods of a commercial mortgage are usually from 10 years up to a maximum of 30 years. There are mortgages with which some lenders offer shorter repayment periods. Some mortgage agreements offer you interest-only payments for the first 2 years
Before entering any commercial mortgage deal, it is wise to consider carefully the advantages and disadvantages of these types of loans.

Advantages to having a Commercial Mortgage:
Substantial capital gain can be made by you when buying a commercial property. This can be a good way of realising capital growth over a long period.
Commercial mortgages typically have lower interest rates than other unsecured business borrowings such as loans or overdrafts. You could opt for a fixed rate commercial mortgage which could help you to accurately manage and forecast your business borrowing costs.
Commercial mortgage interest payments are tax deductible - which can contribute to reducing your business tax liability.
Commercial mortgage payment plans usually extend for several years allowing a business focus on other important business matters such as sales, monitoring overheads and training staff.
Some Lenders will agree to you renting out some of your surplus business space– this can bring in additional income to help you cover your commercial mortgage payment.

Disadvantages of Commercial Mortgages:
A decent amount of deposit may have to be raised by you. This is money that could have been used in other business operations.
You need to ensure the size of business premises you are buying is large enough to take any future expansion into account. You could find it expensive to move again if it is not. If renting a business premises, you could negotiate ending your rent agreement or find another business to take up your tenancy.
A variable rate commercial mortgage would mean you would be vulnerable to interest rate increases.
All maintenance costs, insurance and security costs would have to be paid by you.
Any loss of value on the property would result in a reduced capital value.

Commercial Mortgage Application

The financial information that we will need to support a mortgage application is as follows:

  • Last 3 years Audited Accounts
  • Latest Management Figures
  • Profit & Loss Forecast for next 12 months
  • Last 6 months business bank statements
  • Brief CV/profiles of partners/directors
  • Asset/liability statements of applicants

All cases are supported by professionally prepared credit applications, thereby significantly enhancing the chances of our clients securing the optimum financial package.

Broker Fees

Unlike some of our competitors, we do not believe in up front charges. Our fees are only payable when our client has received a formal offer of finance.

Please call and speak to one of our Property Funding Consultants on 0844 4144372 to discuss your proposition or complete our Enquiry Form