Commercial Mortgages

Fiducia Commercial Solutions can provide a range of Commercial mortgage options.

Commercial Mortgages are used to fund the purchase, or refinance of, commercial and semi-commercial properties.

In general terms, there are 2 types of Commercial Mortgages:

  • Owner Occupied – The purchase or refinance of the property where the company is currently operating, or the purchase of a new property to move to and operate from.
  • Commercial Investment – The purchase or refinance of commercial or semi-commercial property which will be rented to another company to operate from – essentially a commercial Buy To Let.

Commercial Mortgages

Commercial Mortgages are specifically designed for commercial real estate, which includes properties such as office buildings, retail spaces, industrial warehouses, and multifamily residential buildings.

One common type of commercial mortgage is a traditional term loan. This is a long-term loan with a fixed interest rate and repayment term, typically ranging from 5 to 30 years.

The UK commercial mortgage market offers a range of options for businesses looking to secure financing for their commercial properties.

These mortgages are specifically designed for businesses and are used to purchase or refinance properties such as office buildings, retail spaces, industrial units, and warehouses.

Fixed-rate mortgages fix the interest rate for a specific period, typically between 2 to 10 years.

Some business owners like the stability and predictability in their monthly repayments, allowing them to plan their finances accordingly.

Interest Rates

Another popular option is the variable-rate mortgage, where the interest rate fluctuates based on market conditions.

This type of mortgage offers the potential for lower interest rates initially, but it also carries the risk of rates increasing over time.

Businesses that can handle fluctuations in their monthly repayments may find this option more suitable.

Fiducia Commercial Solutions has access to other specialised commercial mortgage options available in the UK.

For example, there are mortgages specifically tailored for buy-to-let properties, where businesses can purchase commercial properties with the intention of renting them out to generate income.

These mortgages often have different eligibility criteria and may require a higher deposit.

There are also options for businesses looking to expand or renovate their existing commercial properties.

Experienced Team

Fiducia Commercial Solutions experienced team will work with clients to guide them through the process, working though detailed financial information, including their business accounts, cash flow projections, and business plans.

Lenders will assess the viability of the business and the property being financed to determine the loan amount and interest rate.

It is worth noting that commercial mortgages in the UK typically require a higher deposit compared to residential mortgages.

Lenders often require a deposit of at least 25% of the property’s value, although this can vary depending on the lender and the specific circumstances.

The UK commercial mortgage market offers a variety of options to suit the needs of different businesses.

Whether a business is looking to purchase, refinance, or develop a commercial property, there are mortgage products available to help them achieve their goals.

The Fiducia Commercial Solutions team will work with clients to carefully assess their needs to sources the most suitable commercial mortgage option for their specific situation.

Contact Us

Like to discuss commercial mortgages with our team?