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If you need to borrow to acquire commercial premises as an investment you may need a mortgage to assist you. The main difference between a commercial mortgage for investment purposes and a standard commercial mortgage is the assessment of the risk. The amount you can borrow will be determined buy a number of factors which include, strength of the covenant, LTV, rental income, term of the mortgage, sector etc. Many lenders will lend on interest only, capital and interest or a blend of the two, dependent on your requirements and affordability.

We can help with the acquisition of a large number of property types including but not limited to;
Office: Single office units, serviced offices, office blocks, business parks

Industrial: Industrial units, warehouses, factories, Lock-ups

Educational: Schools, day care nurseries

Health Care: Care homes, nursing homes, GP surgeries, veterinary practices, dental practices, pharmacies

Leisure: Restaurants, cafes, spas, gyms, pubs

Rates and Fees

Fees

Interest rates for the commercial mortgages are dependent on a number of variables, including; experience, financial strength, industry sector.

Rates can start from as little as 3% for very strong proposals with arrangement fees starting from 0.75%. We will always communicate with you regarding the likely cost of borrowing and we will always provide, in writing, a breakdown once we have received borrowing terms.

There are competitive terms with high street lenders however you may need to move your business banking to secure them

Fees

Typically, commercial investment mortgages are subject to the following fees;

Lender arrangement fee

This is a fee the lender charges for arranging the loan. Once the loan is agreed there is a considerable amount of work which is undertaken to get the loan from agreed to actually drawn you taking ownership of the property. The arrangement fee can vary from lender to lender. This can start from 0.75%. Some lenders will allow you to add the arrangement fee to the loan. Some lenders will also require half of the arrangement fee as a ‘commitment fee’ upon acceptance of a formal mortgage offer.

Legal fees

Legal fees vary considerably depending on the complexity and findings of the conveyancing. Whilst these fees can mount up it is important to remember that the lawyers are acting on yours and the banks behalf to ensure that there are no nasty surprises when you finally purchase your property. Lender will often assign law firms from their panel. The lender will pay particular attention to this element as they will have a legal charge over the property. It is therefore to work with a commercial property lawyer wherever possible.

Valuation fee

This is the cost associated with having the property independently valued. Lenders will use a panel of preapproved valuers and will instruct the valuer on your behalf. The valuation is addressed to the lender however you will usually receive a copy for your own records. The cost of the valuation is dependent on the value of the property, location, complexity and speed of requirement. The fee is often paid direct to the valuer however lenders can request the valuation fee upfront for them to pass direct on your behalf.

Broker fees

As the broker in the transaction we will charge a fee for our services. This is usually 1% of the loan amount unless the case is complex and we may negotiate otherwise. If you are a first time client we will also charge an appraisal fee of £495 which is non refundable. This is payable on you agreeing with our terms and conditions and covers the research time that will be required based on your circumstances. The £495 will be deducted from the 1% due upon successful receipt of a formal mortgage offer.

To discuss our fees in more detail, please contact one of our mortgage brokers. We are very transparent about our fees and remuneration and will include these in any quotes that are provided.

How to Apply

As a whole of market broker, we understand how best to present your proposal to the lender and which lender would be most favourable for your circumstances.

Fact Find

We will always engage with you to fully understand you lending requirements. This will often involve understanding your wider business and commitments. Once we have an understanding of the proposal we will give you a steer on the likely appetite for your application.

What information do you need to provide?

As with all lending application we need to gather information to present to the lender. Here’s a general list of the information that will be required;

  1. Proof of identity, address (this can be done quickly and effectively via our mobile onboarding app)
  2. Proof of income
  3. Certified financial accounts for the past three years (if available)
  4. Details of the property or sales agent’s particulars
  5. Details of any existing leases or tenants (if appropriate)
  6. Details of any relevant landlord experience i.e. number of properties and term as a landlord.

We will also identify any other relevant information required when we discuss your requirements at the fact find stage.

Commercial Mortgage Application Form

Please download our Interactive Commercial Investment Mortgage Application Form. This will allow you to share the relevant information with us to act upon your requirements as quickly as possible.