Commercial mortgages

Commercial mortgage rates and fees

Commercial mortgage rates are not standardised in the same way as residential or buy to let mortgages, instead each rate is individually priced to match the strength of the proposal. The fees associated with commercial mortgages are a little more straightforward and detailed below.

Rates

There are two types of commercial mortgage - an owner occupier mortgage for trading premises and a commercial investment mortgage for those looking to invest in commercial property. Our team of specialist brokers can help you source both.

Rates for business mortgages are dependent on experience, track record, industry sector and the strength and performance of your business or the business you are considering.  

Currently the high street lenders are offering our clients fantastic rates whether you are an existing or new operator. We have facilitated interest rates from 2% over base rate, lender arrangement fees between zero and 1.7% and up to 80% loan to value for top performing businesses. We have arranged up to 100% of a purchase price with the benefit of supporting security.   

Currently the high street lenders are offering some good rates to investors looking for 70% LTV or less.

Competitive terms are available for business owners although be prepared to move your business banking to achieve the best terms available.

Commercial mortgages from the specialist lenders tend to be priced higher but they don't want your business banking, will offer some interest-only payment terms and they'll lend up to 75% LTV.

To talk through your borrowing requirements and find out what rate you can expect to pay, give us a call on 0845 345 6788.

 

Fees

Commercial mortgage transactions are subject to the following fees:

Lender arrangement fee
Payable to the commercial mortgage lender for arranging the finance. This will either be added to the overall loan or deducted from the loan at completion. Some lenders may take part of the arrangement fee as a commitment fee on acceptance of the lender’s formal mortgage offer.

Valuation fee
The lender will require the property to be valued by one of their panel valuers. The valuation fee is usually paid on submission of the application or once the facility has been agreed in principle. Please be aware that due to their more complex nature, valuations on commercial properties are usually more expensive than valuations for residential property.

Legal fees
Many commercial lenders require separate legal representation and this is paid for by the borrower. In addition the borrower will often have further legal fees payable to their own solicitor.

Given the nature and complexity of titles and covenants on many commercial properties, a higher legal cost is usually incurred compared to legal fees for residential property.

Broker fees
We charge a success-only broker fee, normally 1% of the loan amount. This fee is due on successful receipt of a formal mortgage offer from the commercial mortgage lender. To discuss this broker fee in more detail please contact one of our brokers.

Depending on the complexity of the case, we may also charge an initial administration fee for the work involved in submitting the application to the lender for an initial decision. This administration fee is normally deducted from the Broker Fee.

Payment
We accept payments by debit card. Payments by other cards, including credit cards are subject to a 2% surcharge. Please note we are unable to accept American Express cards.

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.