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*Commercial Mortgages are also known as Business Mortgages
We research the whole of the market to give you the best advice
We can help anyone who needs access to borrowing – business owners, property developers, landlords, investors, or individuals planning a new venture.
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Commercial Finance can take various forms, including Commercial Mortgages and Development Finance. Our team of Commercial Mortgage brokers can advise on, and arrange, both. Whether you’re exploring an investment opportunity, working on a development project, or securing the long-term future of your business, we’ll find a bespoke solution to meet your needs.
A Commercial Mortgage is a loan secured against a commercial property. It can be used to purchase new premises or remortgage an existing property in order to raise finance for your business. They can be used to fund the purchase of various types of property, from fully commercial premises to mixed-use (combining both commercial and residential spaces) and even plots of land. There are two main types:
A Commercial Mortgage for a Trading Business is a loan used to buy a property your business will operate from, such as an office, retail premises or a warehouse.
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A Commercial Mortgage for Investment is a loan for purchasing commercial property with the intent to rent it out. Like residential buy-to-let mortgages, this covers properties such as offices, pubs, restaurants or industrial spaces.
These are also know as also known as Owner Occupier Mortgages or simply Trading Mortgages. If you rent the premises from which your business operates, it could help you buy a property. Many business owners choose to purchase their premises through a separate holding company or Special Purpose Vehicle (SPV) to limit risk to their business and investment. There could also be tax advantages to this approach – though it’s important to speak with a tax advisor before making any decisions.
Commercial Mortgages are typically offered on a capital repayment basis and require a deposit that’s usually 25%-35% of the property’s purchase price.
*Projects may be accepted from new businesses
When setting the rate, lenders typically consider:
Please be aware each lender has their own pricing structure and methods for calculating mortgage rates.
These are also known simply as Commercial Investment Mortgages. Most lenders will offer up to 75% of the property’s value (loan-to-value or LTV). There are various mortgage options available for purely commercial properties or mixed-use properties. It’s also possible for one property title to have multiple usage classes. It’s common practice to borrow on an interest-only basis, however capital repayment is an option. There are fixed and variable rate products available.
You can choose to take out a commercial mortgage for investment either in your personal name or through a Special Purpose Vehicle (SPV).
*Some lenders offer mortgages for vacant commercial properties, but these are less common and often have stricter requirements
While some high street lenders offer Commercial Mortgages, they’re only a small proportion of the options available. Many Commercial Mortgage lenders, such as centralised lenders and private banks, are not accessible on the high street. Some work exclusively through brokers or intermediaries, meaning they won’t consider direct applications from borrowers.
By working with a specialist broker, you gain access to a wider range of lenders, potentially unlocking more competitive rates and better deals that you might otherwise miss out on.
It depends on your circumstances, how you plan to use the property and factors such as the loan term, deposit amount and business stability. It’s important to research various mortgage deals, compare loan options, and consider all associated fees and risks — not just the initial interest rate.
It’s a good idea to consult with a Commercial Mortgage advisor. At PSG Financial Consultants, we can assess your situation, then compare business mortgage rates and products from both the high street and specialist lenders. Then we’ll advise you on the best options and next steps.
A type of funding available to businesses, for financing the construction, conversion or heavy refurbishment of buildings. Whether you’re a first-time developer, a builder venturing into development, or an experienced developer with multiple projects behind you, we can help you secure the bespoke development finance you need. See relevant project types below.
This type of development project involves creating new premises and properties. It can entail building brand-new homes, demolishing an existing structure and rebuilding, or converting something like a barn into a residential dwelling/s. From single properties to complete housing estates or blocks of student apartments, we can secure property Development Finance for a variety of projects at different stages of construction. We’ll work with you to assess the viability of your project and determine the best type of financing to get your plans off the ground.
If you’re refurbishing an existing property (light or heavy refurbishment) instead of starting from scratch, you would typically need Bridging Finance. Light refurbishment refers to any type of development that typically doesn’t require planning permission and doesn’t involve significant structural changes. Heavy refurbishment involves making significant structural changes to the interior of a property, typically requiring planning permission.
Typically, you’ll agree on the total amount of development finance needed, which can be up to 75% of the Gross Development Value (GDV). Funds are generally released in set stages as your project advances. There may be an opportunity to access additional funds if the development’s value increases. The final stage of funding will be released once the building has been signed off by building control.
There may be an option to release cash tied up in your development, to fund your next project or reduce the cost of funding it. We can help you find the best solution.
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