Commercial Mortgages

What is a commercial mortgage?

A commercial mortgage is used to purchase/refinance property for a business. Like with other types of mortgages, with a commercial mortgage, you borrow capital against the value of a property.

Commercial mortgages can be used for a variety of business purposes. The reasons include acquiring business premises, purchasing land for future development, renovation of a property, refinancing an existing commercial mortgage and expanding on your current property or land.

Our property team can provide financial assistance for commercial mortgages across the UK.

What are the different commercial mortgage options?

Owner-occupier mortgages: This type of commercial mortgage is used to secure or refinance a property that will be used for business purposes by the entity who has applied for the mortgage. Like with a residential mortgage, a deposit is required, and then a fixed number of monthly payments follow to pay for the property.

Commercial investment mortgage: This type of commercial mortgage is the process of purchasing a property designed to be used as an investment, any income generating property type can be considered. The loan and repayments are structured around the income derived from the property.

How commercial mortgages work?

With a commercial mortgage, the lender reviews the eligibility requirement of the business applying. Then, a deposit is paid for the property, typically around 30% of the property’s value. Once the finance has been arranged, you will pay back the amount loaned to you over an agreed period with interest. A repayment profile can be interest only or capital and interest repayment dependent upon the circumstances of the transaction.

Is a commercial mortgage right for your business?

A commercial mortgage can be a great solution for businesses wanting to secure a new property for either business or investment purposes.

If your business is wanting to own their own property and move away from using rented space, a commercial mortgage maybe an ideal option.

Applying for a commercial mortgage

MAF Finance Group can compare finance options from our panel of lenders to identify the solutions that meets your needs.

If you would like to get a quote or need further information, simply fill out the form below and we will be in touch. If you would like to speak to us directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, you can email us at [email protected].