Commercial Mortgages

Commercial mortgages are loans against non-residential property which have multiple uses. These can be used as either investments similar to a buy to let or used for your own business which can come with huge benefits of eventually owning your own premises rather than paying rent. It also comes with the potential added benefit of having another business operate from the premises aiding in your repayments.

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These commercial buildings can range from offices and restaurants through to factories and warehouses with other property uses being considered.

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These function similarly to normal mortgages but they have some differences:

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1. Higher deposits, 25-30% are standard

2. Shorter maximum term lengths, many limiting to 25 years

3. Affordability models based upon a businesses performance generally seen via EBITDA figures

4. Typically have 1 - 2% arrangement fees

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Unlike normal mortgages, commercial mortgages are not something you can find on a comparison site. They require a far more in depth understanding of the commercial lenders available so having someone on your side aiding you through the process can be incredibly important.