A commercial mortgage is a loan used to buy or refinance a property that will be used for business. At Key Mortgage Advice, we help clients understand how commercial mortgages work and guide them through the process with clear, straightforward support.
Many people search for commercial mortgage information because the steps can feel more complex than a standard residential mortgage. Our role is to make it easier and help you feel confident about your next move.
What A Commercial Mortgage Is Used For
A commercial mortgage is secured against a non residential property. This could be an office, shop, warehouse, industrial unit or similar premises. Businesses also use commercial mortgages when they want to refinance an existing property. The lender assesses the application based on the strength of the business, the purpose of the property and long term plans.
People often ask if you can get a mortgage on a commercial property. The answer is yes, although every lender has different criteria. That’s why working with a broker is helpful. We compare lenders and explain what each one is likely to look for.
Understanding Commercial Mortgage Rates
Another common question is whether commercial mortgage rates are higher than residential. Rates are set differently because lenders view commercial lending in its own category. Each lender has its own products and criteria. Here at Key Mortgage Advice, we explain your options clearly so you understand how the rates apply to your situation.
If you want a quick estimate, you can use our mortgage calculator for a simple idea of what repayments might look like.
How Much Deposit Do You Need
There’s no simple answer to how much deposit you’ll need for a commercial mortgage, it depends on the lender, the type of property and how the business is performing.
Commercial mortgage deposits tend to be around 30% of the property’s value, however, online figures often vary, which is why expert advice is more reliable. Our team of mortgage advisors and specialists review your plans and explain which lenders may be suitable based on your circumstances. This also applies when the property has both residential and business use, which is where part-commercial mortgages come in.
What Is A Part-Commercial Mortgage?
A part-commercial mortgage is used for properties that contain both business space and living accommodation. Typical examples include a shop with a flat above it or a small mixed use building where part of the space is residential and the rest is used for trading. These properties do not meet the criteria for a standard residential mortgage, and they sit outside the scope of a full commercial mortgage, so lenders assess them separately.
Each lender has its own approach when reviewing the type of property. The rate offered can depend on how the building is split, how the space will be used and your experience with property or business ownership. Some lenders prefer applicants who’ve already managed commercial or rental premises, while others focus on the financial strength of the application.
How To Get A Commercial Mortgage
Many clients want to know how to get a commercial mortgage and what information they need.
Lenders usually ask for:
- Performance figures
- Details of your partners and directors
- Tax returns (for a period of at least three years)
- Recent bank, liability and asset statement records
However, the exact requirements depend on the lender’s criteria.
Our job is to guide you through this process. We help you prepare your application, explain what lenders want to see and compare options from a wide range of banks, building societies and specialist commercial lenders.
Commercial Mortgage Support From Our Team
As independent brokers, we’re not tied to any single lender. Our mortgage brokers in Preston, Southport and Garstang compare more than one hundred lenders across the market to find suitable options for your plans. We also support clients with standard mortgages, buy to let mortgages, remortgages and lifetime mortgages, so you can rely on our guidance throughout your financial journey.
Get in touch with us today on 01772 620000, email us at enquiries@keymortgageadvice.co.uk or fill in our online contact form.
Commercial Mortgage FAQs
Can I Get A Commercial Mortgage For Investment Property?
Yes. Many clients use commercial mortgages for investment. The lender will look at the property itself, the income it may generate and your financial position.
How Long Does The Commercial Mortgage Process Take?
This depends on the lender, the type of property and the information needed. We keep the process organised and guide you through each step to avoid delays where possible.
Do Lenders Look At Trading History?
Most lenders will want to see accounts and forecasts. This helps them understand the strength of the business and the purpose of the loan.
Can You Get A Commercial Mortgage On A Leasehold Property?
Some lenders accept leasehold property, although the remaining lease term usually needs to meet a minimum requirement.
