Mortgages - Anglo Scottish Finance

Mortgages

Secure a property at an affordable rate

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.

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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.

CASE STUDIES

Levels Above Change Direction With Help From Anglo Scottish

Levels Above pivoted its offering, mid-pandemic, with the assistance of Anglo Scottish who helped the company gain £160,000 in finance resulting in an increase in its profit margin, from 25% to 75%.

Asset Finance and Sole Traders

For many small businesses, accessing traditional funding from banks can be challenging, this is especially true for sole traders, which is why many chose instead to utilise asset finance. We take a look at why asset finance and sole traders work so well together.

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Discover how Anglo Scottish helped Centurion Travel upgrade its fleet with Clean Air Compliant vehicles.