Commercial mortgages are a type of loan that businesses can use to finance the purchase or renovation of commercial property. They are similar to residential mortgages, but there are some key differences. Here is an overview of how commercial mortgages work, who is eligible for them, and the benefits they offer businesses.
What are Commercial Mortgages
Commercial mortgages are loans that are used to purchase or refinance commercial property. They are typically used to finance the purchase of office buildings, retail space, industrial warehouses, and other types of commercial real estate.
How do you get a Commercial Mortgage
In order to get a commercial mortgage, you will need to apply with a lender. Many different types of lenders offer commercial mortgages, including banks, credit unions, and private lenders. The application process will vary depending on the lender, but you will typically need to provide financial information
The process of obtaining a commercial mortgage is similar to the process of obtaining a residential mortgage. However, there are some key differences that you should be aware of.
First, commercial mortgages are typically much larger than residential mortgages. This means that the application process may be more complex and the approval criteria may be stricter.
Second, commercial mortgages often have shorter terms than residential mortgages. This is because commercial properties tend to turn over more quickly than residential properties.
Third, commercial mortgages typically have higher interest rates than residential mortgages. This is because commercial loans are considered to be riskier than residential loans.
Eligibility for Commercial mortgages
Commercial mortgages are available to a wide range of borrowers, including individuals, businesses, and nonprofit organisations.
The most important thing to note is that you must have good credit in order to qualify for a commercial mortgage. Lenders will look at your credit score and your credit history in order to determine whether you are a good risk.
In addition, you will need to have enough income to make the payments on the loan. Lenders will typically want to see at least two years of financial statements in order to determine whether you can afford the loan.
Types of commercial mortgages available
There are a number of different types of commercial mortgages available, including:
Fixed-rate mortgages: These are the most common type of commercial mortgage. They offer a fixed interest rate and payments that stay the same for the life of the loan.
Owner-occupier mortgages: This is a loan to buy or refinance real estate that will be used as a trading location for your company.
Examples of commercial properties
Mortgages on real estate are a type of mortgage in which the borrower sells ownership of a property to a mortgage lender. Mortgages on commercial real estate may be used to finance land and property types that would not otherwise qualify for conventional mortgages.
We’ve listed some of the most recent property categories for which we’ve been able to offer low rates
- Restaurants and cafes
- Offices and office complexes
- Convenience stores
- Retail outlets
- Factories and warehouses
- Development Land
- HMO (houses in multiple occupancy)
- Nursing and care homes
- Industrial units
- Specialist buy to lets for flats under one freehold title
- Owner occupation commercial mortgages
- Investment purposes
- Residential portfolios and Individual buy to let
How IMS can help you with your Commercial Mortgage process and application
The IMS Property Group is a member of the National Association of Commercial Finance Brokers (NACFB), which includes over 1600 commercial finance brokers and lenders across the United Kingdom.
We are required to have Consumer Credit Permission, Professional Indemnity Insurance, a Data Protection Licence, and a solid track record with major lenders as an NACFB member.
To get started on your commercial mortgage application or to find out more information, please contact us today.
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