Business expansion – Release equity in existing property to invest in other assets or businesses.Purchasing existing trading business – Such as a trading hotel or care home.Property purchases – Such as a commercial tenant buying their freehold or relocating your business to larger premises.However, 100% finance is available subject to additional security being offered to the lender in lieu of a cash deposit and enhanced affordability checks.Ĭommercial mortgages can be used to benefit the business by funding: To secure a loan, most lenders require a minimum deposit of 25%. ![]() ![]() These loans typically start at £50,000 with different lenders have maximum facility limits ranging from £3m to £50m.Ī commercial mortgage, also known as a business mortgage, serves as a medium to long-term loan, usually spanning three to 25 years. They are often the cheapest way to borrow because a lender takes tangible security against their loan in the form of a legal charge over the property/properties being offered as security. The lender will take some or all of the clients property investments as security (this may be residential, commercial or mixed use property, or a combination of all within the portfolio) and provide one loan, assessing serviceability by aggregating the total income from the portfolio to meet the proposed loan repayments.Ĭommercial mortgages are typically used to acquire or refinance both residential and commercial property and/or trading businesses. Property Portfolio Loans are provided to property professionals and investors. In most scenarios the rental income the property generates is used to repay the debt over a period of time. Read about how we supported a convenience store owner to grow his portfolio here.Ĭommercial Investment Property Mortgages are provided to property owners who are investors and receive a rental income from a third party tenant or licensee. Owner-Occupied Commercial Mortgages are provided to businesses that trade from and own the property they wish to borrow money against. Commercial Investment Property Mortgage.There are three types of commercial mortgage:
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