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 agreed interest rates from 2% over base rate, lender arrangement fees between zero and 1.7% and up to 80% loan to value for preferred sectors. 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 borrowers 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, they will offer some interest-only terms and they'll lend up to 80% LTV.
To talk through your borrowing requirements and find out what rate you can expect to pay, give us a call on 0345 345 6788.
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.
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.
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.
We charge a success-only broker fee, normally 1% of the loan amount. This fee is due within 18 days of 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.
We accept payments by debit and credit cards. Please note we are unable to accept American Express cards.
Next: How to apply for a commercial mortgage