Mortgages for commercial properties, property investment businesses and property developers
Mortgage loans can be divided into two categories:
Owner-occupier mortgages: This is used to buy property that will be used as trading premises for your business.
Commercial investment mortgages: This is used for property you’re planning to let out.
The interest on your commercial mortgage is tax-deductible
If your property increases in value, your capital could also see an increase
You’ll be able to rent out the property to generate extra income
A business mortgage plan differs from a regular mortgage in the following ways:
There are usually no fixed rates for commercial mortgages
You’ll usually pay a higher interest rate on commercial mortgages compared to regular home mortgages as these are considered higher-risk to lenders
Commercial mortgages tend to offer better interest rates than regular business loans as these require property as collateral
The mortgage is secured by a first legal charge on your business premises.
A commercial mortgage can be used for:
Refurbishing owner-occupied business premises
Buying motor vehicles, machinery and other equipment
Most commercial mortgages are paid at a variable rate. Typically, a rate will be quoted as X% over base or LIBOR, and this in residential terms would be called a tracker mortgage. Fixed rate mortgages are available and for amounts under £500,000, where the lender takes the rate risk themselves, they may be advantageous.
The rates charged for commercial mortgages and business loans are not determined from the off-set like most personal loans are. Lenders usually have a risk profile that they work to, so if your loan falls outside their risk profile it will be refused.
You will certainly need a deposit for a commercial mortgage and this is likely to be a higher percentage of the total mortgage than a residential mortgage which can be as low as 5% deposit.
Commercial mortgage deposits tend to range from 20-40% of the loan.
We were approached by a broker; whose music producer clients wanted to expand their business by purchasing their own recording studio.
Our expert team was able to secure a commercial mortgage with:
No arrangement fee
No Early Repayment Charge (ERC)
77% Loan to value
A cross-charge over properties
Minimal deposit, strong accounts
Deposit from a Trust
A high street lender
Clever Lending helped a customer to achieve the following:
New Finance: Prop 1
New Finance: Prop 2
Fund up to 100% of projects
We can help investors and developers secure up to 100% of their commercial property and property investment businesses projects
Solutions for complex cases
Each case is assessed individually, and a solution recommended according to the circumstances
Bad credit accepted
We have a flexible underwriting approach to applicants who have adverse credit
Hundreds of products
Commercial loans available from £50,000 with no maximum. Fixed and variable rates with up to 100% LTV
Not every case is the same
As each customer’s situation is unique, we’ll take the time to understand your situation, and we carefully assess your property finance requirements.
We can handle case directly
We will work with all parties to ensure you to get the right solution in place.