Commercial mortgages

A commercial mortgage is a loan secured against commercial property, repaid over the long term. There are two main routes, and they are judged differently.

How much you can borrow depends on the property, the strength of the income behind it, and how the deal is put together. As a rule, an owner-occupier can borrow up to around 75 to 80% of the value, and an investment property up to around 70 to 75%, depending on the tenant.

There are ways to go further. Additional security, such as another property held outright, lets a lender advance more against the combined position. And professional practices, including dental, medical, veterinary and some legal and accountancy firms, can often borrow up to 100% of the value, because lenders treat that professional income as dependable.

Pricing is usually set as a margin over the Bank of England base rate, or as a fixed rate for a period. The strongest cases, a solid business buying at a sensible loan-to-value, are priced the keenest. Terms run up to 25 years, and a director's personal guarantee is normally part of the arrangement.

The commercial mortgage market is wide, and the difference between lenders is large. One will price an industrial unit keenly and shy away from retail. Another will lend against a specialist property that most will not touch. The same deal can look very different depending on who sees it.

We are whole-of-market, and after more than twenty years arranging commercial finance we know which lenders suit which properties and which businesses. We place your deal with the one likely to say yes on the best terms, rather than testing it against the whole market and hoping. And because every deal is led by a principal, you deal with the person structuring it, not a case handler you never meet.

We will also tell you when buying is not the right move, or when refinancing an existing facility would serve you better than a new purchase. The honest answer is the point.