Can I get a commercial mortgage?
Lots of people can get a commercial mortgage (for a building a business will use). If you want to run your own business from the property, industry experience can give you more lender options. If you want to invest in a commercial property, but rent it out, having experience in doing this also gives you more ender options, but both may be achievable without experience.
Factors that may affect your application
- Your credit history
- Not having enough money for a deposit
- The value of the property being less than you expected
If you have questions, chat to our advisors on live chat, via the phone, or get a call-back we're here to help.
You can get variable rates or fixed rates. High street lenders tend to offer variable rates and challenger banks tend to offer fixed rates. Use our commercial mortgage calculator to compare today’s rates.
- First time buyers to experienced landlords
- You must be over 18 years old
- Minimum deposit 25% of the property value
- Upper age limits at application are flexible
- Low personal incomes are accepted
- Property, pension and employment income is OK
Ready to get started?
Request a call-back from our expert advisors
We work with a wide range of commercial lenders, including:
Why choose Commercial Trust as your commercial mortgage broker?
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.
Our whole focus is landlord finance solutions, which means that you will get a recommendation based on detailed knowledge of the latest deals available.
- Borrowing up to 75% loan to value
- No minimum income options
- Flexible maximum age requirements
- 2 and 5 year deal periods
- Owner-occupied mortgages
- Investment mortgages based off rental income
- Complex cases
- Portfolio deals
- Special Purpose Vehicle applications
- Trading limited companies applications
- First time landlords accepted
- Capital repayment, interest-only or part and part
- Flexible purposes for capital raising
- Dual representation solicitor options
Costs involved in a commercial mortgage
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.
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.
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.
What our clients say about us
Your mortgage term can vary from 3 to 25 years. Some are capped at 15 years.
Unlike residential mortgages, commercial mortgages are available for much shorter periods. But, the terms offered vary with each lender. The terms of the mortgage are often dictated by the property. This will include its size, type, location and value.
To find out how much you would pay monthly you can use a commercial mortgage calculator.
Buying property: Buying a business premises is more complex than buying residential property. The pro-cess is slower because of this. Your conveyancing solicitor will have a big impact on the speed the deal goes through. It is important your solicitor has experience in commercial property buying. Different lenders also have different processing timescales.
Don't confuse commercial completion timeframes with buy to let timeframes. Buy to let mortgage com-pletions are much quicker and take around 3-4 months. Commercial completions take 4-5 months.
Remortgaging property: remortgages tend to be quicker than purchases. This is because there is less legal work involved.
Buying with a commercial bridging loan: Are you are under the pressure of time? A commercial bridging loan may be better suited to your needs. They complete faster.
If you want to buy a commercial property and don't have the full amount, a commercial mortgage can help.
You cannot use a residential or buy to let mortgage to buy commercial property. Their terms and conditions do not cover this property type.
You can buy property, remortgage and raise capital with a commercial mortgage.
Compared to residential mortgages, commercial mortgages carry more risk to the lender. For this reason they tend to be higher in cost.
Lender ‘criteria’ determines who will be eligible for a mortgage. These are rules lenders set around who they will lend to, and what type of property they will accept. These rules are all linked to the level of risk associated with a lending scenario.
You can use a commercial mortgage to buy a property and let it out to third parties (an investment mortgage). Or, you can operate your own business from it (an owner-occupier mortgage).
Inexperienced landlords may need a bigger deposit than an experienced landlord.
But, if you an owner-occupier and have a profitable business, lenders can be more flexible. To show this, you will need accounts for over a year. Your accounts must show that you can easily afford monthly mortgage payments.
You may worry that your age is a barrier, but, lenders are flexible on upper age limits.
Deposits on a commercial mortgage are higher than with a buy to let or residential home.
A specialist broker can help you by discussing your specific scenario. They will tell you if there are any limiting factors affecting your ability to borrow. A broker can search across the market to find you a suitable deal. They will do all the due diligence needed to ensure the product suits you.