Commercial mortgages can be arranged for funding the purchase or re-mortgaging of a property that is primarily for commercial or business use and can be arranged for a trading business to trade from, or alternatively as a form of investment (commercial buy to let mortgage).

A commercial mortgage can be used on a fully commercial property, for example, offices, retail, warehouses, or can be used on semi-commercial properties, for example, a shop with residential accommodation above, or a house with a commercial unit attached.

Mortgages are provided by banks and other specialist lending institutes. Commercial mortgages are considered a complex type of lending requiring a higher level of expertise to successfully arrange.

The current typical LTV (loan to value) for a commercial mortgage is 70%

Through us, you will have access to commercial banks/funding institutions who provide lending up to 75% on a standalone basis, or 100% with additional security if available.

High Street banks are able to provide us with rates from 1.9% above the bank of England base rate, but the interest rates for commercial mortgages vary according to a number of factors including but not limited to:

• LTV
• Property Type
• Repayment Terms
• Loan Size
• Mortgage Type
• Credit Scoring
• Income Cover
• Experience and profitability of the business

As one of the leading commercial mortgage brokers in the UK, our mortgage team have years of combined experience in helping customers, both personal and business, buy and re-mortgage commercial, semi commercial and residential properties.

We are able to arrange the best deals in the mortgage market with access to exclusive products not available directly to the wider market.

With the benefit of our experience and position within the commercial mortgage lending market, and relationships developed through our experience in arranging commercial mortgages and business mortgage facilities, we are able to negotiate bespoke terms and put together market leading terms for both simple, and complex deals with our lending partners providing you with the benefit of our experience to help you obtain the very best deals on the market.

Commercial mortgage facilities are available for a wide variety of land and property types. Listed below are a small selection of the more recent property types we have successfully funded with our commercial mortgage lending partners.

• Restaurants and cafes
• Offices and multi-unit serviced office complexes
• Convenience shops
• Retail outlets
• Factories, warehouses and storage units
• Development Land
• HMO (houses in multiple occupancy) and multi-unit blocks of flats
• Nursing and care homes
• Industrial units
• Specialist buy to lets for flats under one freehold title
• Owner occupation commercial mortgages
• Investment commercial mortgages for letting purposes
• Residential portfolios and Individual buy to let

As with residential mortgages, the higher LTV you require, the more expensive the loan will be. A lower LTV will help keep your costs down but a higher LTV requires a smaller deposit.

You should typically expect to borrow no more than 75% of the property’s value, and some lenders will advance you no more than 60% of the value of the property if you want to access their best buy to let rates.

High LTV buy to let mortgages

The higher LTV means you can save on your deposit, or perhaps look for a slightly more expensive property to buy, but the interest rate is likely to be higher than with lower LTV mortgages.

Maximum LTV buy to let mortgages

Buy to let mortgages are considered more risky by lenders than normal mortgages, because they are relying on the actions of a third party (the tenant) as well the borrower. As a result, the highest LTV buy to let mortgages are usually 85%, which is a lower limit than with homeowner mortgages.

Buy to let mortgages of above 80% are available to some landlords, although they can be harder to secure. A new landlord will usually find it tough to secure a high LTV buy to let loan.

Buy to let mortgages with no income

As with traditional homeowner mortgages, proof of income is usually required by lenders so they can calculate affordability and be happy that you can repay what you have borrowed.

But there are a few lenders who will be more flexible – if you have savings you can fall back on, for example, you might be able to secure a buy to let mortgage. But expect to pay a higher interest rate if you are in this position.