Are you Looking for a Commercial Mortgage?
In its simplest form, commercial property finance is the use of secured lending to purchase a commercial property. Much like a residential property loan, the collateral for this type of finance is usually the commercial property itself.
Every deal Accelerated Finance looks at is bespoke to ensure we source the appropriate financial package to meet your requirements. We have overcome some of the most time sensitive and complicated cases.
With our completion guarantee, we provide you with the assurance of success and no upfront fees.
How can we help?
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Up to 75% Loan To Value (100% with additional security)
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Mortgages starting from £250,000
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Terms from 3 months to 30 years
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Serviced and Interest roll-up options
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Same day agreement in principle
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We can accept applications from individuals, limited companies, SPVs and offshore structures
We are independent brokers and have strong relationships with many high street commercial lenders as well as private banks, wealth managers and specialist lenders that are not accessible by individual customer approach. To have a look at our lenders,
What is a Commercial Mortgage?
A commercial mortgage is a loan from a bank, building society or other specialist funding institute that is arranged for the purpose of purchasing or refinancing property that is primarily used for commercial or business use.
Commercial mortgages can be utilised for properties that businesses will trade from or as a way of purchasing an investment, such as a buy-to-let. They can be seen as a complex form of lending; therefore, knowledge of the industry is recommended when arranging.
Types of Commercial Mortgages we would look at
It’s possible to get a business mortgage on a range of property types, below are just a few of the possible examples:
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Leisure properties: Restaurants, pubs, clubs, hotels gyms, casinos
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Semi Commercial Properties: Offices with flats above, shops with flats above
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Retail commercial investment properties: Retail units, retail parks etc
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Office properties: Office blocks etc
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Industrial properties: Factories, warehouses, storage facilities etc
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Nursing homes, hospices, Care Homes etc
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Professional properties: Doctor’s surgeries, private schools, vets etc
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Agricultural: Farms, Farm buildings, Farmland
What Are The Factors That Determine Commercial Interest Rate?
The main factors that lenders will look at before determining the interest rate and fees are the following:
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Company Accounts: Is the company firstly making a profit and what is the forecast for the future? Lenders will also look at the current debt level within the business and if there is any the serviceability of the debt.
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How long the business is trading and what sector the business is in: For example, retail or restaurants are considered a higher risk and new businesses trading under 3 years also have a risk element attached to the loan.
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Credit History: Lenders will search the overall credit history of the company as well as the individual shareholders and directors.
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Personal Guarantees (PGs) : In many cases a full personal guarantee of the loan is not always required, but instead the lender will ask for a limited guarantee of the loan. If this not offered by the borrower, this could be looked at unfavourably.
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Size of the Loan: The larger the deal, the lower the interest rate you can command. Smaller mortgage loans may incur a higher interest, because the cost of running an ongoing mortgage account.
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Use of Property: Lenders like investment properties where there has a been a long standing tenant with a long lease. Owner occupied mortgages are also fine provided the owner is running a profitable business from the security.
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Loan to Value: Where a purchase is required, a deposit of between 25% to 40% will be required. If additional security then the deposit required could be less.
Accelerated Finance can negotiate the right deal depending on your circumstances, and can arrange loans typically from 3 months to 30 years.
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