Commercial Mortgages

Commercial mortgages, also known as business mortgages, let business owners borrow money so they can purchase property or land for their business. Like a residential mortgage, the money is borrowed from a high street bank or specialist lender and is repaid in monthly instalments, along with interest. 

Applying for a mortgage can be complex, but Counting King will help you navigate the process and make life easier.  

We will ensure you have the correct information for the loan application, advise you on what products are currently available and which are more suited to you and your business. We will also be able to give a view on how long lenders are taking to assess applications, which could be useful when it comes to securing the best property for your business.   

Working with Counting King will ensure that the application process is not only easy and less time consuming for you but can help get a prospective lender on side and even, depending on the lender, achieve a lending rate on a par (or even less in some cases) with dealing with a lender directly. 

If you are a new business without a strong credit or trading history, then lenders might view you as more high-risk than an established business. If so, they may demand personal guarantees and check your personal credit rating. 

Commercial Mortgages allows business owners to own the premises where their business is based , enables investors to buy a property to lease to another business  or allows residential property owners to buy multiple properties to rent to tenants .

You will certainly need a deposit for a commercial mortgage, and this is likely to be a much higher percentage of the total mortgage than residential mortgages which can be secured with just a 5% deposit. 

Commercial mortgage deposits tend to range from 20-40% of the loan. You might need to take out a separate loan to cover the cost of the deposit, in which case the affordability checks will also include the deposit loan repayments to make sure that you are able to meet all your financial commitments. 

Counting King does not charge you to place you with lender. 

However, there are several types of fees which apply when you are arranging a commercial business mortgage.   

Arrangement fees: these are usually added to the loan after the loan is approved, but some lenders might insist on the arrangement fees being paid up front to protect them in case the loan doesn’t go ahead. Arrangement fees vary, but normally range between 0.5% to 2.5% of the amount borrowed.  

Valuation fees: before the mortgage is approved, a valuer appointed by the lender will visit the property and give their opinion on what the property is worth. Valuation fees can start at around £500 but will be higher in bigger or more complicated valuations. 

Legal costs: with commercial mortgages, borrowers are required to pay both their own legal fees, and the legal fees of the lender. Because of the variety of property available in the commercial market, your legal fees will vary depending on the complexity of the work involved. These can include insurance, site surveys and the preparing of legal documents. 

If you are looking to buy commercial property to let out to another business rather than use yourself, you could explore getting a commercial buy to let mortgage.   

If you decide that a commercial mortgage is not the best option for your business, there are a number of other finance options available.

Bridging loans can be a short-term funding gap solution which can help you purchase a new property before the sale on another property completes.   

Depending on your property requirements, you might be able to meet your needs with a business loan. A short-term business loan could help you borrow money without signing up to a long-term commitment.