What is a commercial mortgage? A commercial mortgage is a loan secured (or guaranteed) using property that is not your residential home. Any proceeds from a commercial mortgage are typically used to buy, refinance or redevelop commercial property.
So, there is a similarity with residential and buy to let mortgages, however, commercial mortgages are not regulated by the Financial Conduct Authority.
We have included some information about financing commercial property, so please read on. Or, contact us to discuss your requirements and find out about current opportunities that are available.
One of the most common needs for a commercial mortgage is your need for business premises.
For example, a factory, industrial warehouse, shopping complex or office block.
A commercial mortgage or commercial mortgage finance can also be used to expand an existing business and for residential or commercial property development.
Commonly, they are the principal resource for financing any business development plan.
Unlike a residential mortgage, a commercial mortgage extends finance in four distinct ways:
Lending for commercial mortgages has been rising steadily since 2011, according to figures published by HM Revenue and Customs in 2015. In 2014, commercial mortgages represented just 5.2% of all mortgages advanced, but 25.3% of all mortgages by value.
The average commercial mortgage was found to be nearly £1.5 million, compared to the average residential mortgage. Which was less than £250,000.
While the principle of a commercial mortgage is relatively straightforward, it is important to note that any lender will be expected to take a keen interest in the following:
Allow us to find you the best deal for your business.
Contact Brookfield Finance today.