Commercial Mortgages Service
Special features of what we offer include:
- Whole of market service - we can compare commercial mortgages products with most UK lenders
- Fast turnaround - speak to us today if you need to move quickly
To investigate your commercial mortgage options call our mortgage team on 0117 403 4474 or fill in our call back form.
What is a commercial mortgage?
Commercial mortgages are offered by many of the big high street lenders as well as by specialist lenders.
As commercial mortgages tend to be a higher risk than lenders they usually incur a higher interest rate and there can be a few additional requirements you need to be aware of.
To get a commercial mortgage you generally need:
- A positive credit rating, some lenders may be willing to grant mortgages to borrowers or businesses who have adverse credit histories but their choice will be limited
- A deposit, while there are options available for smaller deposits being able to put down at least 20% of the property value will decrease the amount of interest you need to pay each month
- Information to evaluate if the property would be worth enough to cover the loan in the event that you defaulted on your repayments
- Evidence to show that you can keep up with your repayments
If you are intending to purchase a commercial property with its business then you will need to offer the lender additional information such as:
- Projections for business growth
- Details of personal investment you have in the business
- Credit status of the business
- Information about how the business is currently performing
- Forecast for profits and loss in the upcoming years
- Information on why the business is currently being sold
- Credit checks of key stakeholders
Commercial Mortgage Fees
With commercial mortgages the arrangement fees may be offered as a percentage of the loan value rather than at a fixed rate as you would expect with a residential mortgage.
As with a residential mortgage you will also need to pay for valuation fees, legal fees and keep in mind any redemption penalties for paying off the mortgage early.
With commercial mortgages there are a range of both repayment and interest-only plans. With an interest-only commercial mortgage the lender will need you to provide them with evidence of an investment policy or other appropriate insurance to show that you will be able to pay the outstanding loan at the end of your mortgage’s term.
Commercial Mortgage Advice
If you are currently searching for a commercial mortgage it is important to shop around to try and find the best deal for you or your business, you may want to consider consulting an independent mortgage advisor who has knowledge of the market and could help you find an appropriate plan.
If you want to find out more about commercial mortgages or any other kind of mortgage you could fill in the enquiry form on this website to request a call back from a member of the Fair Mortgages team or call 0117 403 4474.