cleverlending

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Commercial Mortgage

Mortgages for commercial properties, property investment businesses and property developers

commercial mortgage

We have access to a wide range of commercial mortgage solutions and can help investors and property developers who have more specific or niche requirements. Lenders we work with can provide finance for the following:

Commercial Mortgage FAQ

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:

Buying property

Investment finance 

Property development

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. 

Is it possible to obtain 100% commercial mortgage for a property development project?

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

 

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What next?

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Use our callback form below to speak to one of our experienced brokers and find the best lender for your auction finance.

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Use our live chat facility or speak to us on the phone, our expert team are here to help find you the perfect loan for your situation. 0800 316 2224

Auction finance arranged

We are a broker, giving you access to the market for short-term finance. We deal direct with the lender and handle the application process for you.

Types of finance

Bridging loans

This a loan you can use to buy a new property that you need to renovate before re-selling or renting on the market. You can use bridging to release equity you have in an existing property for up to 24 months.

Development finance

This is finance to extend or make structural changes to an existing property, maybe converting a house into flats, or maybe you are looking to build from the ground up on land with planning permission.

Commercial mortgages

You'll need a commercial mortgage if you're going to use the property for business purposes, e.g. as a shop.

Second charge buy to let mortgages

For if you own a buy to let property and would like to release some equity to start a new project.

Second charge mortgages

This is a loan that allows you to release equity from your main residence, often ideal if you are asset rich and need funds towards a development project.

6 Great Reasons to Choose Clever Lending

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.

Contact the Clever Lending team on

0800 316 2224