A Commercial mortgage is similar to a residential mortgage in that they are both secured on a property as a first charge.

Commercial mortgages can be secured on a wide range of properties; these include shops, guest houses, farms, industrial buildings, pubs and so on, with the normal length of a commercial mortgage being 5 to 30 years. They can be repaid on a capital and interest basis or on an interest only scheme. The latter can help reduce monthly payments considerably and therefore give more flexibility with budgets.

The usual maximum loan to value (LTV) you can borrow is 85%. This can be increased to above the value if additional security is being approved, such as other commercial properties or the applicants own home. In these instances most lenders will simply take a floating charge behind any other existing mortgage you many have on the additional property being approved as security. It can be advantageous to have a commercial mortgage with a different lender from the bank or building society that the business account is held. If the business account falls into difficulties the mortgage lender need not know.

If you would like one of our team to assess the best option for your own circumstances and provide a firm quote then call us today  on 0845 643 4067 or complete our enquiry form.