Commercial lending is very different to residential lending and we have contact with a number of very experienced commercial brokers.
Some properties will not be eligible for residential or buy to let mortgages, so you may need to consider a commercial loan instead.
For example, a property which has been split into flats but still on one title or a property which is part business/part residential (B&B, pub or petrol station with living quarters.)
Commercial lenders usually require a 25 to 50 percent deposit and offer terms from 1 to 40 years.
Before agreeing an application, the lender needs proof that the business has/will have sufficient funds to meet the loan repayments, which may involve you providing a business plan.
They will assess past, present and future plans of the business, which will determine the rate offered.
Rates are usually variable and more than the base rate or LIBOR. Some lenders will offer fixed rates, depending on how they judge the risk element. Unlike residential mortgages, most commercial lenders do not have preset rates, as every application is assessed on its own merits.
