A Commercial Mortgage is a mortgage used for financing a commercial property. To get a Commercial Mortgage, you must be purchasing either the freehold of the Commercial Property or a long lease i.e. 99 years or more.
A commercial property is a property with a business use which includes shops, offices, warehouses, petrol stations, hotels, restaurants and so on. Unlike the residential mortgages, commercial mortgages are assessed slightly differently and consist of a higher interest rates.
There are two different types of Commercial Mortgage:
- An Owner-Occupier Mortgage – this type of business model is for businesses seeking a commercial property for their own trading purposes
- A commercial Investment Mortgage – this model allows business to invest in commercial properties to let out to other businesses.
In both cases, the lender will be requiring a deposit of anywhere between 25%-40%.
Call Advance Mortgages to help you find the perfect solution. We will refer you to our commercial business partners to support you with your commercial mortgages.
