WHAT IS COMMERCIAL MORTGAGE?
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
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
Terms and 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.
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