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Commercial mortgages for shops and retail premises

Looking to purchase or refinance a retail unit? You’re not alone. According to The Local Data Company and British Independent Retailers Association, during 2017 there was a significant increase in the opening of independent shops.

Retail property types

The retail sector covers a variety of businesses and property types. We can help source finance for both the freehold and leasehold of:

  • All high street shops including:
    • Bakers
    • Butchers
    • Florists
    • Hair salons
    • Beauty salons
    • Nail bars
    • Convenience stores
    • E-cigarette stores
    • Book shops
    • Chemists
    • Toy shops
  • Retail parks
  • Cafes and food outlets
  • Shopping centres

Qualifying for finance 

Experienced in this sector? If you are looking to achieve the very best rates specific industry experience is key. Lenders like to see you have undertaken retail work in the past or have operated a business. It doesn’t have to relate to business you are purchasing, but of course this helps.

If you have no experience in this sector, don’t panic – there are still options. We will work with you to package your application to ensure it stands the best chance of being accepted. Be prepared to provide us with your business plan and details of the proposed/current management structure.

The more information you can give us the better. For example - perhaps the current owner is going to stay on for a few months to show you the ropes? If so, tell us. This is all valuable information.

Mortgage rates and terms for retail property

We can obtain the following terms for retail property:

  • Rates from 2.5% above Bank Rate
  • Lender arrangement fees from 0% - 2% of the loan amount
  • Loans from: £50,000
  • Minimum term: 5 years
  • Maximum term: 25 years
  • 6 – 12 months offered on an interest only basis if the premises requires refurbishment or restocking
  • Enterprise Guarantee Scheme - rates available from 3% above Bank Rate (max term 10 years)
  • Loan to value generally between 60% and 70%.
  • It is possible to borrow up to 100% of the purchase price, if the profitability of the business supports the overall mortgage requirement. Supporting security must be offered and you must have significant retail experience or already own a business.

Standard documentation required

If you’re looking to apply, please be prepared to provide the following:

  • A completed commercial mortgage application form
  • Proof of ID and address
  • Latest 2-3 years' accounts for the new business (if purchase)
  • Latest 2-3 years' accounts for the current business (if refinance)
  • A copy of your CV
  • A copy of your key employees' CVs - e.g. hotel manager
  • Six months' personal bank statements
  • Six months' business bank statements (if remortgage)
  • A schedule of assets and liabilities in conjunction with personal income and an expenditure statement

Mortgage application processing times

Processing times vary depending on the complexity of the application, on average ranging between two and three months. 


How to apply for retail finance

Call: 0345 345 6788 

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