Commercial Mortgages

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A mortgage used to buy a commercial piece of property or commercial building.

We are now able to offer Non-conforming and Near-prime Commercial Mortgages.

Advances from £50k to £2m

10 - 30 year terms and 3 year interest only available.

100% LTV available (with additional security)

No accounts or business plan, need Self-cert? Try Us!

Commercial Mortgages Info

Commercial mortgages are the mortgage loans made using commercial real estate as collateral to secure repayment. A commercial mortgage looks just like a residential mortgage, apart from the fact that the collateral is a commercial building or other business real estate, not residential property.

Commercial mortgages types

Moreover, commercial mortgages are generally preferred by businesses instead of individual borrowers. The borrower may be a partnership, incorporated business, or limited company, so assessment of the creditworthiness of the business might come to be more difficult than is the case with residential mortgages.

Some commercial mortgages are no recourse, which means that should the situation of a default in repayment arise, the creditor can only take into his ownership the collateral, but he cannot make any other claims against the borrower for any remaining deficiency.

The main reason behind all these commercial mortgages has two sides: many laws do not allow the creditor to go after the borrower for any deficiency, and mortgages structured for sale as bonds offer a higher priority to constantly receiving some sort of income and as a consequence demand a clause which gives the lender the possibility to take hold of the property quickly, irrespective of bankruptcy procedures that the borrower might have to handle in the meantime.

More often than not, the commercial mortgages come together with a general obligation of the borrower or a personal guarantee from the owner(s), which allows for the debt to be paid in full even if foreclosure on the mortgaged collateral does not meet the criteria of the outstanding balance.

Changes with commercial mortgages

In the past few years there have been some crucial changes to the commercial mortgages market, and these changes are offering now outstanding opportunities for landlords and business owners.

Large corporations, Insurance funds, Pension funds and the State have historically owned the great majority of the UK commercial property, but since the late 90ís property boom specialist mortgage lenders have recreated and made commercial mortgages more and more manageable.

Therefore now anyone has the possibility as a business owner to save on paying rent by purchasing a commercial property for self-occupation. Moreover, the Buy To Let mortgage scheme has made Buy To Let landlords very affluent and now they have assets (residential property), which they can leverage to enter the commercial lettings market.

The UK commercial lending market, once under the monopoly of the high street banks such as Barclays, Natwest, HSBC, Bank of Scotland, Lloyds TSB, is now full of commercial mortgages lenders.


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Commercial Mortgages