Commercial Mortgage Finance
Commercial mortgages are loans secured, or guaranteed, using property that is not a residential address. Proceeds from commercial mortgages are generally used to buy, refinance or develop commercial property.
There are similarities with residential or buy to let mortgages, but commercial mortgages are not regulated by the Financial Conduct Authority.
To find out more about financing commercial property, please read on, or get in touch with us to discuss your requirements.
Why you may need commercial mortgage finance
One of the main reasons people need commercial mortgages is to finance business premises, like a factory, warehouse, office or shop for example. Commercial mortgages can also be used to expand your business, or to develop residential or commercial property. They are generally the principle resource for financing any business development plan.
Unlike residential mortgages, commercial mortgage finance can be used in four distinct ways:
- Buying business premises
- Securing land development ventures
- Developing an owner occupied busienss
- Adding to a buy to let portfolio
Lending for commercial mortgages has been rising steadily since 2011 according to figures published by HM Revenue and Customs in 2015. In 2014, commercial mortgages represented just 5.2% of all mortgages advanced, but they made up 25.3% of all mortgages by value.
They average commercial mortgage was almost £1.5 million, whereas the average residential mortgage was jut £250,000.
What types of commercial finance are available?
The principle of a commercial mortgage is reasonably straightforward, but it’s important to know what lenders are looking for when assessing any application:
- The value, nature and state of repair of the commercial property against which the mortgage is to be advanced
- The financial standing, health and prospects for growth of the business seeking the loan – this is how a lender will determine if the business can afford and sustain the mortgage payments
There are a wide range of commercial mortgages available which vary according to the amount borrowed, the interest rate and the term. For help navigating through what’s available, and what’s best for your business, just get in touch.
CLIENT TESTIMONIALS
How else can we help you?
Our clients vary in terms of their financial status and their mission. Some already own some form of commercial property and simply want a better deal. Property could include a workshop, warehouse, office or other types of property.
Many need finance to fund a diversification project which will produce income. Or they are expanding their business or replacing expensive debt.
Business Expansion Finance
Cashflow Finance
Bank Refinance
Equity and Loan Finance
Why use Buzz Financial?
At Buzz Financial, we have considerable experience in helping clients to expand their businesses by accessing the funding that is needed.
By considering your unique needs, we will find the business finance solution that is most appropriate for your business and your industry. We will then present you with the most financially attractive options to help you move forward quickly.
To find out more, complete our online enquiry form or contact us by telephone or via email to discuss your business goals with us.