Commercial Mortgages are loans that are secured on commercial property such as shops, business premises, warehouses, factories, workshops, garages, hospitals and schools.

As with a residential mortgage the commercial lender will hold the title deeds to the property as security. In the event of arrears the mortgage lender can repossess the commercial property.

Cost of a Commercial Mortgage – Rate Of Interest payable

Borrowers can expect to pay between 1 and 4 percent above Bank of England Base Rate for a mortgage term of between 10 and 30 years. The exact rate of interest payable and length of mortgage term will be determined by the lender’s assessment of the borrower’s financial situation and ability to repay the loan.

For a business that is currently trading, some mortgage lenders will only make allowance in their calculations for the value of the land and buildings for which the mortgage is required. Other lenders will take into account the total value of the business when deciding upon the sum that they are willing to lend.

To apply for a Commercial Mortgage contact us here.