The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
The right mortgage for you depends on many factors, including your budget, credit score, life stage, deposit size, the type of property you’re buying and
Commercial mortgages are loans designed for businesses looking to borrow over £25,000, secured by a first legal charge on business premises.
Securing the right commercial mortgage to suit your business needs can be challenging, but at UKMC, our expert mortgage advisors simplify the process. We have access to a vast range of commercial mortgage products and can compare thousands of options on your behalf to find the most suitable solution for your business.
Our team of experienced mortgage and finance brokers is committed to delivering top-tier service, ensuring you secure the most competitive rates and terms. Whether you’re purchasing new business premises, refinancing an existing commercial property, or expanding your investment portfolio, we provide tailored guidance every step of the way.
We take the time to understand your unique financial circumstances, credit history, and borrowing requirements, helping you navigate the complexities of commercial mortgages with confidence.
Commercial mortgages are loans designed for businesses looking to borrow over £25,000, secured by a first legal charge on business premises.
They can be used for:
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A commercial mortgage is a long-term loan secured against non-residential property, such as offices, shops, warehouses, and factories. If repayments are not maintained, the lender may repossess the property.
For purchasing or refinancing business premises (up to 75% LTV)
For financing rental properties (up to 70% LTV)
For multi-occupancy rental properties (up to 60% LTV)
Bridging finance repaid within 1-3 years (up to 70% LTV)
For construction and renovations (up to 65% LTV)
For landlords managing multiple properties (up to 70% LTV)
What Are The Benefits?
Avoid rental costs and build long-term assets.
Choose repayment structures that suit your financial plans, with terms ranging from 1 to 25 years.
Opt for fixed or variable rates, with fixed rates available for up to 10 years.
Interest payments may be offset against corporation tax, reducing overall costs.
Refinance or borrow against property value as it appreciates.
What Are The Considerations?
The mortgage is secured against the commercial property, meaning risk in case of default.
Arrangement, security, and valuation fees may apply, increasing upfront expenses.
Full capital repayment is required at the end of the term for interest-only mortgages.
Paying off a fixed-rate mortgage early can lead to substantial charges.
A first legal charge over the property requires clearing any prior loans when remortgaging.
A commercial mortgage can be a strategic investment for business growth, providing financial stability and long-term benefits. Working with a mortgage broker can help you secure the best deal for your needs. If a mortgage isn’t the right option, consider these alternatives:
Most lenders require a deposit of around 25-30% of the property’s value. However, the exact amount will depend on factors such as the type of property, the loan amount, and the financial strength of the business applying for the mortgage.
Yes, commercial mortgages are available to small businesses, including sole traders, limited companies, and partnerships. Lenders will assess factors such as credit history, business financials, and projected income before approving a loan. Some lenders offer specific mortgage products tailored to SMEs.
Borrowers can choose between fixed or variable interest rates. A fixed-rate mortgage keeps the interest rate unchanged for an agreed period, providing predictable monthly payments. A variable-rate mortgage fluctuates based on the Bank of England base rate or the lender’s standard variable rate, meaning payments may increase or decrease over time.
In addition to interest payments, commercial mortgages often come with additional costs, including arrangement fees (charged by the lender), valuation fees (for assessing the property’s worth), and legal fees (for conveyancing and contract preparation). It’s essential to factor these costs into your overall budget when applying for a commercial mortgage.
Applying directly through a lender involves substantial paperwork. A specialist mortgage broker can simplify the process and connect you with the right lender.
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.Â
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.Â
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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