Commercial Mortgages for Businesses in the UK

At Taste Finance we have developed relationships with a large number of lenders who can offer a variety of commercial mortgages based on the individual requirements of a business.

commercial mortgages for business

What is a Commercial Mortgage

It’s a loan that is typically used to finance the purchase or expansion of a business property. The loan is secured by the property itself which may be freehold or long leasehold, which serves as collateral in case the borrower defaults on the loan. Commercial mortgages are usually structured as either Interest only or Capital repayment commercial mortgages, and interest rates can either be Fixed rate or variable rate depending on the needs of the borrower.

What are the different types of Commercial Mortgages for business

There are two main types Owner-Occupied and Investment

Owner Occupied – are used where a business is starting to trade and is acquiring a premises to operate in. Where a business is currently trading and is looking to purchase a premises. Where a business is expanding and requires an additional premises to operate in.  Where a business is re-mortgaging the premises.

Investment – are used to purchase income producing commercial property which will be let to a business for an agreed rent for a specific period of time.

What fees apply to Commercial Mortgages for business

There are commonly 4 types of fees;

Arrangement Fees – These are fees charged by the lender as a percentage of the total amount borrowed.  They maybe payable upfront or after the application has been made.

Broker Fees – If you are using a commercial mortgage broker they will charge a fee as a percentage of the total amount borrowed.

Legal Fees – Will be payable to the solicitor who is acting for the purchaser of a commercial property

Valuation Fees – Are payable for the lenders valuer and are charged prior the the mortgage being approved

How can Taste Finance help arrange my Commercial Mortgage

We assess every business individually so we can source the most appropriate lender for their needs.  We have access to a large number of specialist lenders.

Speak to Taste Finance about Commercial Mortgages

If you are looking for a commercial mortgage for your business and would like to speak to one of our team, then please contact us using the form below.

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