Commercial Mortgages
- For over 20 years, we have helped clients across the UK save on their financing needs
- Access to over 90 lenders
- We have helped over 1000 property owners in UK
Get in touch for a no-obligation chat about how we might be able to help you.
What's On This Page?
Get In Touch
Commercial Mortgage Solutions from Expert Mortgage Brokers
Get a commercial mortgage!
Secure your commercial mortgages
Contact us today to unlock the potential of your commercial mortgage investments with the right solution. Your successful property venture begins here.
What is a commercial mortgage?
A commercial mortgage is a specialised loan secured on a property or premise that is not your primary residence. Also known as ‘business mortgages,’ they’re designed for business owners seeking to buy, invest, or borrow against commercial properties, buy-to-let properties, or land for commercial purposes.
How do commercial mortgages work?
Commercial mortgages function similarly to residential mortgages, with the lender advancing you funds to purchase or secure a property. However, the key distinction lies in the purpose – you’re borrowing to acquire or leverage a property for commercial endeavours rather than a residential dwelling.
Just like residential mortgages, you’ll repay your loan over time through regular repayments. However, commercial mortgages often offer more flexible terms, variable interest rates, and loan amounts tailored to your business needs.
Your partner in commercial success
At Expert Mortgage Brokers, we understand that every business is unique, and your commercial mortgage should reflect that. Our dedicated team will meticulously analyse your financial landscape, guiding you through the process and crafting a customised strategy that aligns with your long-term objectives.
Key features of commercial mortgages
A commercial mortgage plan differs from a traditional residential mortgage in several ways, offering unique advantages tailored to your business needs:
Flexible interest rates
Unlike regular mortgages, commercial mortgages typically offer variable interest rates, allowing you to adapt to market fluctuations and capitalise on favourable conditions.
Competitive rates for investment growth
While commercial mortgages may carry higher interest rates than residential mortgages due to their perceived higher risk, they often provide more competitive rates compared to regular business loans, making them an attractive option for your investment portfolio.
Property as collateral
By securing your commercial mortgage against a property or premise, you gain access to advantageous terms and rates, leveraging the value of your asset to fuel your business growth.
Speak To an Expert
Competitive commercial mortgage rates and terms
Arrangement fees
Usually factored into the loan following its approval, setup charges are essential to cover the lender’s endeavours, to ensure you are subject to a fair offer. These charges typically range between 1% – 2% of the total loan amount for loans up to £1 million.
Valuation fees
A valuer will visit your property, carrying out an in-depth analysis and providing a comprehensive report to the lender. Commercial valuations begin at roughly £500 for straightforward cases, with fees determined based on an individualised quotation, payable upon acceptance of an initial indicative offer.
Solicitor charges
Legal expertise is paramount in securing your investment. You’ll be expected to cover your legal costs and those of the lender. These fees can start at approximately £500 per party.
Brokerage commissions
Our expert mortgage brokers offer personalised advice tailored to your unique circumstance and property, and advocate for you with lenders. This invaluable service is typically charged at a maximum of 1% of the total loan value.
Remember, your property may be repossessed if you fail to keep up repayments on your mortgage. To protect your investment, ensure you have a clear understanding of all fees involved in your property mortgage.
Navigating commercial mortgages with Expert Mortgage Brokers
Securing a business mortgage with Expert Mortgage Brokers is breezy. Here’s a snapshot of your journey:
Start your application online
Start your application with a simple click. We’ll ask you a few basic questions about yourself and the purpose of your loan, all subject to status in the UK.
Review your offers
Once you get your indicative quote, take the opportunity to review a range of offers from our extensive network of lenders.
Accept your chosen offer
Pick the lender that fits your needs and accept their offer.
Frequently asked questions on commercial mortgages
Most commercial mortgages in the UK are offered at a variable rate, often calculated as a percentage over the base rate or LIBOR. This structure is similar to a residential tracker mortgage. While fixed interest rate options are available, particularly for loans under £500,000, variable rates are more common, allowing lenders to manage their risk profile. Unlike personal loans with predetermined rates, commercial mortgage and business loan rates are determined based on the lender’s risk assessment of your business’ eligibility.
To qualify for a commercial mortgage, you’ll need to meet the lender’s eligibility checks, which typically include:
Evaluation of your business’ cash flow, debts, and financial health
Assessment of projected income to determine the ability to repay the loan
Availability of a deposit, ranging from 20% to 40% of the property’s value
Consideration of rental income, which impacts your business’ cash flow
Analysis of your general income, credit score, and assets
While there is no definitive minimum or maximum deposit for a commercial mortgage, most lenders in the UK require a deposit of around 30% of the property’s value. However, this can vary based on factors such as your business’ financial strength, credit profile, and the value of the property used as security.
Yes, first-time commercial property buyers can secure a commercial mortgage, but they may need to meet stricter criteria. This typically includes a larger deposit (potentially 30% or more), a strong credit score, and evidence of a profitable business. Working with an experienced commercial mortgage broker can improve your chances of approval as a first-time commercial buyer.
Absolutely. Commercial mortgages are available for semi-commercial properties that combine residential and commercial elements within the same building. Lenders will assess the property’s value and your business’ eligibility criteria to determine the appropriate mortgage product and terms.
Useful Links
Why Should You Use Expert Mortgage Broker for Your Bridging Loan?
Here’s why you should use an expert broker for your bridging loan:
- Expert guidance
- FCA regulated lenders
- Competitive Rates
- Hassle Free