If you’re a business owner looking for a commercial mortgage broker, Derngate Wealth Management offers professional and impartial advice to help you navigate the commercial mortgage market and ensure you fully understand the terms and conditions.
As an independent commercial mortgage broker, we have access to the whole market. We act as an intermediary between you and any lender and are dedicated to finding a mortgage that works for you and your business.
Contact us today for a free consultation at a time to suit you.
What is a commercial mortgage?
Commercial or business mortgages are for investors and business owners who are looking to buy property or land for commercial use.
A commercial mortgage can also refer to any loan secured for the purchase of any property that is not your residence, but which you are planning to gain an income from, such as a buy-to-let property.
From small startups, to medium enterprises, to multi-million pound companies, we are qualified to advise and find mortgages for a full range of businesses.
How does a commercial mortgage work?
Commercial mortgages can last from three to 25 years and you can usually find a 70-75% mortgage which is calculated against the value of the property.
Types of commercial mortgage
There are two key types of commercial mortgage to choose from:
- Owner-Occupier Mortgages: If you’re looking to purchase a property to use as a trading premises for your business, such as a brick-and-mortar shop or office, then you’ll need what’s called an owner-occupier mortgage.
- Commercial Investment Mortgages If you’re looking to purchase commercial property to let out, then you will need what’s called a commercial investment mortgage. The amount you can borrow will depend on the rental income generated by the investment , although this will still be capped at 65% of the purchase price.
At Derngate Wealth Management we can help advise on exactly which type of commercial mortgage is right for you.
Commercial Mortgage Benefits
There are a number of benefits to having a commercial mortgage, which includes:
- Tax-deductible interest
- Potential to generate extra income by letting out the property
- Potential to grow in capital if your property increases in value
Quick Commercial Mortgage Enquiry
Things to consider
There are some key things to consider when it comes to having a commercial mortgage:
- Variable rates:
- Higher interest rates:
- Large Deposits:
Most commercial mortgages are attached to variable rates meaning that the interest you pay back is subject to change during your contract. We can help you plan for a potential rise in interest to ensure you’re not caught off guard.
There are some fixed rate mortgages available for commercial properties, which we can explore with you.
Compared to residential mortgages, you’ll usually pay a higher interest rate on commercial mortgages. However, the good news is that commercial mortgages can offer better interest rates than a regular business loan as the property is used as collateral.
Commercial mortgages sometimes come with large deposits which is something you will need to factor into your budget plan.
What our customers say about us
Our clients value our friendly expertise and practical approach to finding a mortgage. We offer a hassle-free, efficient service and search the whole market to ensure you’re getting the right mortgage for your unique circumstances.
If you’re in need of a commercial mortgage broker contact us today for independent advice and access to the whole market.
Our initial consultation is free of charge, but there may be an administration fee payable when a mortgage application is submitted through us. This fee is usually £195 and we are also paid commission from the lender.
Just like with a residential mortgage, if you do not keep up repayments on your commercial mortgage your business premises may be repossessed.
Yes, you can remortgage a commercial mortgage.