Whether you’re looking to purchase new property or land, refinance or expand your buildings, we can help you find the best commercial mortgage to meet your requirements.
What is a commercial mortgage?
A commercial or business mortgage is a type of loan for businesses that want to borrow funds to purchase property or land for business use or expand their existing property. Most used by business owners who want to own the premises, commercial mortgages can also be used by investors who want to buy a property to lease to another business or a residential property developer/owner who wants to buy multiple properties and rent to tenants.
How to apply for a commercial mortgage
Once you have identified your needs or located the property you wish to purchase, contact the team here at Anglo Scottish and we’ll get to work.
We’ll take some details from you regarding your business and the property, and we’ll reach out to our panel of funders to find the best deal to match your requirements.
Once we’ve found the right deal and you’ve agreed to the terms, we’ll handle the application with the funder and take care of all the details.
Alternatively, you can use our comparison tool to check your options.
Compare Commercial Mortgages
Using our comparison tool, you can compare mortgages form over 150 funders to find the right deal to meet your needs.
Need help? Call us on 0191 410 4776
What is the difference between a commercial mortgage and a residential mortgage?
The main, and most obvious difference between a commercial property mortgage and a residential mortgage is the use. A residential mortgage is used for buying a home and a commercial mortgage is used to buy a property for business purposes.
Interest Rates
You’ll find that commercial mortgages tend to have higher interest rates than their residential counterparts, as they are a higher risk to the lenders.
Deposit
While it’s possible to secure a residential mortgage with a 5-10% deposit, a commercial loan will usually require a much larger deposit, this is usually between 20 and 40% of the value of the property.
Term
Usually, residential mortgages have much longer terms than commercial mortgages, a residential mortgage tends to have repayment periods of 25-35 years, whereas commercial mortgages will need to be paid back over a shorter period and terms can vary between 1 and 25 years, although some lenders will cap them at 15 years
The benefits of commercial mortgages:
- The interest on your commercial mortgage is tax-deductible.
- If your property increases in value, your capital could also see an increase.
- You’ll be able to rent out the property to generate extra income.