Commercial Mortgages

A commercial mortgage is longer-term finance secured on commercial or semi-commercial property, used by businesses and investors.

Property types

• Offices, retail units and industrial premises
• Semi-commercial (mixed-use) property, such as a shop with a flat above
• HMOs and multi-unit freehold blocks
• Trading businesses such as hospitality, subject to lender criteria

Owner-occupier or investment

• Owner-occupier: your business trades from the property; lenders look at business accounts and affordability.
• Investment: the property is let to tenants; lenders look at rental income and lease terms.

Typical features (illustrative)

• Term: typically 3–25 years
• Loan-to-value: typically up to 60–75%, depending on property and use
• Repayment: capital and interest or interest-only, subject to lender criteria
• Rates: fixed or variable options are typically available