Commercial

A commercial mortgage is a loan used to buy or refinance property that’s used for business purposes — not for living in.

  • It’s like a regular mortgage, but instead of buying a home, you’re buying a shop, office, warehouse, factory, or other business property.

  • You can also use it to buy a property to rent out to other businesses, or to release money from a property your business already owns.

Who uses commercial mortgages?

  • Business owners buying a premises to work from

  • Landlords buying property to rent to companies

  • Investors purchasing shops or office buildings

Key features:

  • You usually need a large deposit (often 25% or more)

  • Interest rates are often higher than residential mortgages

  • The loan is usually for larger amounts

  • The lender will look at your business income, credit history, and the value of the property

Summary:

A commercial mortgage is simply a way to borrow money to buy or refinance property for business use. It’s for people or companies who want to own the space their business operates in or rent out to other businesses.