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If you've decided to make an investment into commercial property or its time to purchase your own business premises then you'll be looking for the best commercial mortgages. Here at First Quality Loans our commercial advisors have helped thousands of people find the right commercial mortgage.
What are commercial mortgages required for?
As a general rule commercial mortgages will take the place of business loans. Usually business loans up to £25,000 are unsecured, but when it comes to larger amounts lenders will require security to make sure the risk is reduced. Due to the legal aspect and administrative tasks when securing commercial properties it is not financially viable to provide a commercial mortgage under £50,000, in fact some lenders will not lend under £75,000.
What do lenders take as security?
Normally commercial mortgages lenders will use the property you are purchasing as security, which is generally 70% of the value of the premises. They will normally request a cash payment for the remainder of the property purchase price. Another property can sometimes be offered as security if you don't have the cash payment. Sometimes other assets can also be used.
How much will I be able to borrow
If the property is an investment the amount you can borrow will be decided by the income generated from the rent, but will not normally exceed 65% of the property purchase price. Any business that includes stock will reduce the amount you will be able to borrow.
What are the length of commercial mortgages
The length of commercial mortgages are normally between 3 to 25 years. If you require a shorter term then a bridging loan or property development loan will be more suitable for your needs. These types of loans can for a few weeks to a couple of years.
Commercial mortgages on residential premises
commercial mortgages can actually cover residential property being used for accommodation such as flats and other housing under the C3 planning order. Whereas a residential mortgage only allows the main resident residential assets under a commercial mortgage lets the owner rent out the property, which is called a buy-to-let property.
How to secure the best commercial mortgage deal
With such an important commitment its important to find the deal that works for you, especially as it could be long term arrangement. At First Quality Loans we work the top lenders in the UK and have the network to provide you with the right mortgage quotes. Whatever your situation.
Properties such as warehouses, industrial units, factories and industrial parks can be purchased with the help of a commercial mortgage. Whether to used as an investment or your business premises.
Leisure & Hospitality
We can help find a commercial mortgage for pubs, bars, hotels and restaurants included licensed premises. You may need to raise additional funds to help with refurbishments which we can also assist with.
If you expanding or starting a new business and need new offices we can help find the right commercial mortgage to suit your situation. Whether you require an office space to start or large office block for expansion we can help.
Retail & Shopping Premises
We have helped people find mortgages for existing retail businesses and new start ups. Commercial mortgages for retail premises and shops are available along with refinancing and acquisition.
Not everyone is fortunate enough to have perfect credit and why should it stop you in a new venture or expansion. We can help find a commercial mortgage even when the banks have said no.
Care Home Mortgages
We can help find mortgages for nursing and care homes. This may be for a new premises or a remortgage to be used as an expansion project or carry out refurbishment.
First Quality Loans is a trading name of First Quality Finance which is Authorised and regulated by the Financial Conduct Authority - Firm registration number 758281
Authorisation can be checked on the Financial Service Register at www.fca.org.uk. Licenced by the Information Commissioners Office, (ZA200642)