COMMERCIAL

WHAT IS COMMERCIAL MORTGAGE?

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A commercial mortgage is a type of loan for businesses that want to borrow over £25,000. The mortgage is secured by a first legal charge on your business premises.  

A commercial mortgage can be used for 

Buying property

Investment finance 

Property development 

Refurbishing owner-occupied business premises

Buying motor vehicles, machinery and other equipment

KEY FEATURES AND BENEFITS

Borrow over a longer time

Choose any repayment from 1 to 25 years. 

Capital repayment holiday

Option to take an interest-only period, subject to status and application.

Flexible terms available

Choose a variable or fixed-rate mortgage. You can switch from a variable to a fixed rate.

Fixed interest rates

Fixed-rate mortgage available for 10 years.

HOW TO APPLY

To find out if you’re eligible for a commercial mortgage, you’ll need to provide 

Three full years’ audited or certified accounts plus current management figures (if produced)

Two months’ bank statements

Assets and liabilities statement
 

Terms and fees

Apply for a business mortgage for amounts over £25,000

Fixed-rate terms from 1 to 10 years

Prepayment fees may apply if you repay all or part of your loan before the expiry of the agreed term

Lending fees and associated borrowing costs apply and can be added to the loan

For fixed-rate loans, if you decide to pay or cancel the fixed interest rate you may have to pay a breakage cost in addition to other fees such as prepayment fees 

Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage. 

HOW MUCH YOU CAN BORROW?

Most commercial mortgage lenders will ask for between 25-40% deposit as the highest loan to value (LTV) ratio you’re likely to find is 75%.

It could, however, be possible to get a higher LTV deal (up to 100%) if you’re able to put down additional security, such as a property or properties you own and hold enough equity in.

The more deposit you have, the better your chances of securing the mortgage you want, since you’ll obviously need to borrow less than someone with a smaller deposit. A higher mortgage deposit will also boost your chances of securing a favorable interest rate.

FREE MORTGAGE & FINANCE ADVICE TAILORED TO YOUR NEEDS, WITH NO OBLIGATION

Patricia Stipler

Lawyer
"I am extremely satisfied with the service I received from Canaan Finance. Their team guided me through the complexities of the mortgage application process with patience and professionalism. They were always available to address my concerns and provided valuable insights along the way. I am grateful for their expertise and would choose Canaan Finance again without hesitation."

Lindy Sue

Psychiatrist
"Canaan Finance is a top-notch mortgage adviser company. They provided me with personalized attention and crafted a mortgage solution tailored to my specific needs. Their expertise and understanding of the mortgage market were evident, and they negotiated excellent terms on my behalf. I am thrilled with the outcome and highly recommend Canaan Finance to anyone seeking mortgage advice."