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100% commercial mortgages
Use property equity to fund a commercial purchase with no cash deposit, where the right structure and security are in place.
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Can you get 100% commercial mortgage borrowing?
There is a way you can buy a commercial property without needing cash savings. It involves raising money for a deposit from other property you own, so as a result you need to own other property outright, or with a mortgage where you own a large proportion of the property.
You can access the funds tied up in your property either by mortgaging it (if you own it outright), remortgage and raise capital (if it is mortgaged with available equity) or, if are within the deal period of a mortgage or have other reasons you do not want to move away from an existing mortgage, you could use a second charge mortgage.
Do commercial mortgage products exist that go up to 100% loan to value (LTV)?
These are very rare. You can usually only find a 100% LTV commercial mortgage product if the security property is a medical practice. For more information, scroll down.
Factors that may impact you getting a buy to let mortgage
- Some types of poor credit
- Not having enough equity in your residential home
- The value of the property you are buying being less than you expect
To speak to an advisor request a call-back, we're here to help.
Is a 100% commercial mortgage right for you?
This page explains how effective 100% commercial borrowing can work using additional security, and where this structure may be viable or restricted. Our advisers often see these cases depend on the value, type and equity in the additional security, as well as the strength of the applicant’s wider financial position.
Who this is for
For investors or owner-occupiers who already own property and want to unlock equity to fund a commercial purchase.
Who this is not for
Not for applicants who do not own other property or who expect mainstream lenders to offer standard 100% LTV commercial mortgages.
Eligibility
- You can be a first time buyers or an experienced landlord
- You must be over 18 years old
- You will need equity in a property you own
- Upper age limits at application are flexible
- Low personal incomes are accepted
- Property, pension and employment income is OK
Ready to get started?
Your personal advisor will call. Direct lines start 01603. Get today's rates, help, or apply. Lender terms provided in as little as two hours!
How does 100% commercial mortgage borrowing work?
The circumstances under which you can achieve 100% commercial mortgage borrowing is quite restricted, as it is not a common option amongst commercial lenders. However, it does exist.
Where you have no deposit, but want to get a mortgage on a business premises (whether you will let out the property to a business, or businesses; or whether you intend to run your own business from it) you can use your home or another property you own as additional security.
In this situation you can borrow up to 70% of the property value on the commercial property you are buying and then – if you have the available equity – the remaining 30% will be covered by a legal charge on the other property you are using as security.
This could be your house or another buy to let or commercial property you own.
The property the additional legal charge will be placed on can be owned with a mortgage – so long as you own enough of the property to cover the 30% you need, to achieve the 100% commercial borrowing – or the property can be unencumbered (no mortgage, you own it outright).
Of course this does mean both the property you are buying and the property you are using as additional security are placed at risk of repossession, if you don’t keep up with the mortgage payments.
The mortgage lender will undertake affordability checks based on the income the main security property will generate, but, you must also be confident this dynamic is affordable for you as you are going to know best if this is the case.
100% loan to value (LTV) commercial mortgages
100% LTV commercial mortgages are different from 100% commercial mortgage borrowing scenarios. 100% LTV commercial mortgages do not require two properties as security, just one – as with any other standard mortgage.
Medical practices are the only property type where this level of borrowing, on one mortgage, is possible.
The reason for this is the much smaller risk of a commercial mortgage on a medical practice not being paid. As such lenders have a strong reason to give full borrowing without the need for additional security.
Why choose Commercial Trust?
Apply with ease by phone
It couldn't be easier to secure a mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.
World class customer service
We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your mortgage completed. All the while giving you progress updates.
Lender decision in 2 hours
By contacting you by phone and email you can get help more quickly than in-person services. It's possible to get you a lender decision in principle in as little as two hours after our call.
We can help you with...
- 100% commercial mortgage borrowing
- No minimum income options
- Lenders with no upper age limits
- Flexible affordability calculations
- Fixed and variable rates available
- Low cost valuation available
- Flexible on adverse credit
- Semi-commercial property accepted
- Pure commercial property accepted
- Special Purpose Vehicle (SPV) applications accepted
- Trading limited company applications accepted
- First time buyers accepted
Costs involved
Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.
You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.
We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.
Every mortgage comes with monthly mortgage costs based on the mortgage interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.
How to apply for a 100% commercial mortgage
1
Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.
2
Your advisor will find the best possible deal from a search of thousands of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).
3
Your advisor will call to discuss the product they have found for you. You will be presented with one mortgage that is the best match for all your needs and offers you the most cost effective option.
4
On your instruction, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.
Commercial Trust is a member of the Legal & General Mortgage Club.
We chose to work with Legal & General as they are the largest, longest-running club in the UK.
This gives our clients the confidence that their borrowing is with a lender selected by an established and trusted club, who are involved in nearly one in three mortgages processed by intermediaries like us.
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