Commercial Mortgages

What is a Commercial Mortgage?

A commercial mortgage is secured against a commercial, or non-residential property. This type of loan can be used to fund a wide variety of property types and situations, and can be bespoke to your business requirements. Commercial mortgages can be used for either the purchase or re-finance of properties, which can be a trading business premises or commercial Buy to Let properties.

The criteria for commercial mortgages tends to be more flexible and this is because lenders tend to take an individual view when assessing the risk of applications, enabling them to consider a wide variety of scenarios, rather than only offering a deal based on limited criteria.

A commercial mortgage can also be used in various situations where the money isn’t needed specifically for a property-related purpose, for instance if the property is going to be used as security for the loan. An example is when a business requires finance for assets, to manage cash flow or even for lending against invoices owed.

Examples of commercial mortgages:

• Development land
• Restaurants and cafes
• Offices and multi-unit serviced office complexes
• Warehouses, factories and storage units
• Industrial units
• Convenience shops
• Retail outlets
• Care and nursing homes
• Business owner occupation commercial mortgages
• Investment commercial mortgages for letting purposes