Business Mortgage Finance and Commercial Development Finance

Find out about commercial mortgages for business and business finance this page will give you a general over view of commercial mortgage financing for business and investment commercial property within the UK.

In general a commercial mortgage for a business works in much the same way as a mortgage for residential property. It is secured by first legal charge over the property you already own or are looking to purchase.  Since properties in the commercial and business sectors take longer to sell on the open market than residential buildings a Bank or lender looking to lend secured against a commercial property needs to consider a wider aspect of your business proposal or investment plan as well as the demand for commercial & business property in your area.

Commercial Mortgages  products allow lenders flexibility to lend against any type of commercial property and business sectors including retail, manufacturing, office, domestic housing development, industrial, agriculture, or even land.Commercial mortgage are also used buy opportunistic buyers looking at taking over existing business, new development sites or redevelopment of older commercial buildings to convert for capital growth.

Semi Commercial Mortgages. Some forms of commercial property may not have sole usage for business or commercial. Where there is a part of the building used for residential purposes - i.e. living accommodation above retail premises.

Self Cert Commercial Mortgages. Most commercial mortgages are full status with banks or lending institutions requiring satisfactory evidence of business incomes, revenues, rental incomes etc to qualify serviceability of the mortgage loan being applied for.  In some cases however, where the business or venture is new where there are no proven track record, or where actual income provable income would be insufficient for the loan, then a self certification or self cert commercial mortgage for a business is required.  This type of mortgage requires a larger deposit, however lenders do not have to see full poof of income on satisfying lending criteria. This makes self cert mortgage products ideal for self employed applicants purchasing or remortgage business property.

Commercial Development Finance

This form of finance is a specific lending product tailored towards the needs of a property developer with some proven track record of previous property development or renovation projects. Development Loans can be secured against land, building plots or even derelict property where there is potential for redevelopment. Development Finance may be a two or three stage process. With one loan for the initial land or building purchase and second phase of the loan being used for financing the construction, building and development costs of the project. Find out more about Development Finance

Commercial Bridging Loans Where there is need for a rapid acquisition of commercial property a commercial bridging loan can be an innovative method of funding in the short term to finance the property before a more longer-term commercial mortgage or exit repayment vehicle can be arranged. Commercial Bridging Finance would also be utilised for short-term funding of property transactions such as land asset purchase to plug the funding gap in the critical stages the acquisition process.  Bridging is also utilised for short term refinancing where speed and flexibility is paramount to bridge property transactions between other lending and resale transactions. Bridging may be expertly utilised to purchase property without a deposit since lending can be based on the open market value and not the purchase price. While applicants would undergo the usual credit referencing when applying for bridging finance, other criteria offers the flexibility of loans secured against the value of the collateral rather than the long term interests of the company.

Bridging deals can take just 48hours to turn around making it the ideal short term funding solution for auction purchases when quick financing is required.

Finance may also be raised for non property related transactions such as purchase of stock for trade or purchase of a business asset on time sensitive contracts.

Residential Bridging Loans

A Bridging loan is designed for short term finance secured against residential property in place of a term mortgage or conventional mortgage which would take too long to arrange or where the property itself would not form good security for the lender for mortgages purposes. Bridging loans are typically used when purchasing a property prior to the sale of an existing property has not completed. Bridging finance many also be used in certain circumstances to avoid bankruptcy, repossessions and clean up mortgage arrears.  Loan are based on the current open market valuation of the property, regardless of the actual purchase price therefore property investors looking to finance 100% of the purchase price when buying at under market value is possible.

Commercial Mortgages for small business owners

Whether you're a small business owner or need financing for a commercial property we could help you. With many years mortgage experience, we can help you find a commercial mortgage to suit your needs. Even if you have been turned down by the bank we still have financing options to suit you!