Commercial Mortgages

Commercial mortgages are more of a specialised field than residential mortgages as the lender has a legal claim over the property until the mortgage has been redeemed in full. Most lenders apply a loan-to-value ratio and will expect you to invest some of your own capital into a purchase of a commercial property. Commercial mortgages are designed using any commercial property as security such as that used for business purposes for example; shops, factories, offices and warehouses.

Although they often come with higher interest rates, commercial mortgages are more flexible and can carry extra incentives for borrowers. In some instances it may be required to also give a surety or guarantee to the commercial mortgage lender, maybe a charge over a non-commercial property in addition to the commercial property.

Should you have more than one commercial property available as security, commercial mortgage lenders can combine the values enabling a larger loan to be taken out within the loan to value ratio.

Commercial remortgages can also be acheived to enable business expansion, renovation or purchase of larger premises etc.