Competitive Commercial Mortgages
Whether buying a property for a trading business or solely as investment, the team at Ramsay & White are well versed at packaging complex commercial cases in a simple and direct format. With so many commercial mortgage lenders in the market, finding the most suitable product can be overwhelming.
At Ramsay & White, we will use our product and market expertise to tailor the best solution for your commercial finance requirements.
Borrow up to 70% LTV
Rates from 2.95%
Terms up to 25 years
Why use Commercial Finance?
Purchase business premises or land
Grow buy-to-let portfolio
Fund business expansion
Build long-term capital gains
Common Commercial Mortgage Questions
What is a Commercial Mortgage?
A Commercial Mortgage is a long-term loan (typically up to 25 years) that is used to purchase (or refinance) any land or property used for business purposes. Just like a traditional residential mortgage, money is borrowed and secured against a property. While there are less Commercial Mortgage products available on the market, their overall value is disproportionately higher than residential mortgages.
What can a Commercial Mortgage be used for?
There are many benefits of using a Commercial Mortgage, such as:
- To buy business premises (and save on monthly rent)
- To secure land for development
- To expand an owner-occupied business
- To add to a buy-to-let portfolio
- To release capital for investment or growth
- To consolidate business debts
- To buy new equipment
- To sub-let or lease part of the building for additional income
What are the benefits of using a Commercial Mortgage?
Using a commercial mortgage to purchase a business premises can lead to long-term capital gains. If the property goes up in value, the business capital does too. As the equity rises, this can then be used to re-invest into the business to fund expansion or purchase additional investments.
What type of business can use a Commercial Mortgage?
Most legal businesses can use a Commercial Mortgage, including:
- Hotels and B&Bs
- Working farms
- Mixed-use properties
What deposit do I need for a Commercial Mortgage?
Given that most lenders will provide up to 70% LTV, this means you will be required to provide a deposit of 30%.
Most lenders will understand that many companies are asset rich but cash poor and therefore will accept security from an existing property.
What interest rates are available with commercial mortgages?
Due to being higher-risk than a residential mortgage, interest rates on a commercial mortgage are higher, too. Commercial Mortgage rates usually start from 2.95% , and will differ from lender to lender based on the amount borrowed and the loan term.
With a variable commercial mortgage, the rates are set against the Bank of England so will change based on the set rate at the time. Conversely, with a fixed rate mortgage, the rates are locked in for a specific period of time.
Who can apply for a Commercial Mortgage?
Given that commercial mortgages are used for business purposes, limited companies, SPVs, LLPs, partnerships and sole traders can typically apply for a commercial mortgage. Additionally, some lenders will even consider clients with poor credit, low income and start-ups.
What is the eligibility criteria for a Commercial Mortgage?
Although the criteria varies from lender to lender, most lenders will take the following into consideration:
- Cash flow
- Level of debt
- Property usage
- Current and projected business income
- Ability to repay the loan
- 3 year’s trading accounts
- Asset and liability statements
- Last 3 months’ business bank statements
- Certified proof of ID
- Proof of residency (utility bill or bank statement)
- Details and profiles of all directors and partners of the business
What fees do I need to pay with a Commercial Mortgage?
The exact amounts will vary across the market, however you can typically expect to pay:
- Broker fee
- Application fee
- Valuation fee
- Arrangement fee
- Legal fee
- Exit fee
- Administration fee
Why Ramsay & White?
Ramsay & White are specialists in property finance. With access to market-leading lenders across the UK and a broad network of experts, we will find the solution that best fits your property finance requirements.
Qualified Commercial and Residential Advisors
Specialists in property finance
Passionate and Experienced Team
Highly experienced support team
Access to whole of market
Fast decision making
Monday to Friday 09:00 - 17:00
Saturday & Sunday Closed
We are members of the
Ramsay & White Ltd. Number 814110 - is an Appointed Representative of New Leaf Distribution Ltd. who are authorised and regulated by the Financial Conduct Authority. Number 460421.
Your home may be repossessed if you do not keep up repayments on your mortgage. Ramsay & White Ltd is registered in England and Wales. Company number: 11127743. Registered office 13-14 Neptune Court, Vanguard Way, Cardiff, UK, CF24 5PJ.
A fee may apply for mortgage advice and, if applicable, you must ask your adviser for details before making any decision relating to a new mortgage as the actual amount will depend on your personal circumstances, but we estimate the typical fee to be £499.