A commercial mortgage can be used to buy property (or land) that will be used for business purposes. They could also be appropriate for clients looking to purchase or refinance commercial properties as an investment.
Yet access to commercial mortgage products and providers can be very restricted. This is one of the reasons that many intermediaries come to Enterprise – to get access to the best products on the market.
We Will Manage the Whole Process for You
The fact that the borrower is a business also means that commercial mortgage applications are complex. From the structure of repayments through to the lending criteria, a commercial mortgage differs significantly from its residential counterpart.
As such, each application has to be assessed and priced individually. To make it easy for intermediaries, Enterprise will manage the whole process – from the initial enquiry through to completion – on your behalf.
Introduction to Commercial Mortgages and Complex Buy-to-Let [Video]
Commercial Mortgage FAQs
What is a commercial mortgage?
When property (or land) is bought for business purposes, the borrowing may be done by a business rather than an individual. In this instance, the business would apply a for a commercial mortgage.
Who can apply?
Only businesses are able to apply for a commercial mortgage.
What is the minimum that can be borrowed using a commercial mortgage?
Often there is a minimum (around £50,000) and repayment can be up to 25 years. As commercial properties differ, each application has to be assessed and priced individually however.
Which types of property can a commercial mortgage be used for?
Here are just a few examples of what constitutes a commercial property for commercial mortgage purposes:
- shops (including those with flats above)
- other business premises such as warehouses factories, workshops and garages
- restaurants and pubs
Who holds the titles deeds with a commercial mortgage?
In the same way as a traditional mortgage, the commercial lender will hold the title deeds to the property as security.
When will my client find out if their application has been successful?
Our experience means that in most cases we will be able to confirm almost straight away whether your client’s application is likely to be successful.
How long will an application take to complete?
From the initial enquiry to completion, our average turnaround time for a commercial mortgage loan is six to eight weeks.
What commission does Enterprise pay to intermediaries on a commercial mortgage?
Commission typically varies from 1% to 1.5% depending on the product provider. (There is a minimum payment of £1000.)