Commercial Mortgages

A commercial mortgage is a type of loan for businesses that want to borrow for property related purposes such as buying property and property development, property investment, and refurbishment of owner-occupied business premises.

Some lenders will also provide commercial mortgages to enable the purchase of business assets such as motor vehicles, machinery and other equipment.

Loans are typically over £25,000 and secured by a legal charge on business premises.

Repayments can be scheduled for terms up to 25 years with a range of options such as fixed and variable rates, and interest only periods in some circumstances.

It can be a cost-effective method of finance if you have property assets, enabling you to increase working capital, invest in business development or in modernising or expanding your business premises, or potentially reduce the monthly repayments of an existing commercial mortgage.

Development Finance

For businesses involved in property development, development finance is a short-term (typically 6-24 months) type of finance specifically for residential or commercial property development.

It is designed to meet the development costs and needs of such a project (such as land purchase, construction, refurbishment).

It is usually advanced as a loan towards land purchase and a loan in stages for development costs. Click here to access a Guide to Development Finance for Small and Medium Sized Housebuilders.