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Commercial Mortgage

One way to grow your business is to purchase the premises, which increases the property value and saves you paying commercial rent. But most lenders view commercial mortgage as a higher risk compared to residential mortgage.

Commercial Mortgage Lenders

A commercial mortgage put simply is a loan secured against any asset that is not classified as residential. This could mean your trading premises or an investment property that provides you a rental yield (such as an office block, retail store, industrial estate and blocks of flats).

Generally the commercial finance industry and commercial mortgages in particular are unregulated in the UK.

Commercial mortgages can be taken as short term and long term finance and really depends on your ultimate goal (we will discuss this with you and provide number of options that suit your needs).

We provide all commercial mortgages and development finance through our sister company westminsterfinance.uk

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We help customers navigate the options available to them through clear information and guidance, this in turn enables them to understand their choices and make informed decisions.

What Services We Offer?

Commercial mortgage lenders’ rates vary from lender to lender and often depend on the type of commercial mortgage.

Owner-Occupier Mortgages

These are often used by business owners for remortgaging or purchasing commercial owner-occupied premises, for example office space. 

Commercial Investment Mortgages

These are often used by those looking to invest in commercial property, such as a house in multiple occupation (HMO), industrial units, shops with sitting tenants and so forth.

Bridging Loans

A bridging loan is a short term loan used to help you 'bridge the gap' when you want to buy something, but you're waiting for funds to become available from the sale of something else. Or you can buy a property in auction in a view to refurbish and then re-mortgage once tenanted. There are number of options we can discuss and help you with.

Mortgage Lending Criteria

Banks will consider the following when choosing to make funds available for a commercial mortgage.

Loan to Value

Property Type

Credit Scoring

Sector Type

Serviceability

Interest Rates

Sector Experience

Asset Quality

Requirements for Commercial Mortgage

Typically, borrowers will have to meet a certain criteria before securing a commercial mortgage.

Business Account

To access commercial finance, borrowers will have to provide certain documentation such as their credit history, business accounts or profit and loss accounts.

Security

Commercial lenders will use a non-residential property as security for the commercial mortgage. This is to ensure that the lender has a course of action.

Deposit

Unlike residential mortgages, which generally require a deposit of 10%, to secure commercial finance the borrower will typically need a deposit of up to 30%.