What Is A Commercial Mortgage ?

A commercial mortgage is a type of loan used to purchase or refinance property intended for business use. With a commercial mortgage, you borrow funds secured against the value of the property, similar to how residential mortgages work.

Businesses can use commercial mortgages for a variety of purposes, such as acquiring office or retail premises, purchasing land for future development, renovating existing commercial spaces, refinancing current loans, or expanding their existing operations.

At Mayfair Southern, our experienced property finance specialists can support clients throughout the UK in securing the right commercial mortgage solution.

Types of Commercial Mortgages

Owner-Occupier Mortgages
This option is suitable for businesses looking to buy or refinance premises they intend to occupy themselves. Much like a residential mortgage, a deposit is required upfront, followed by monthly repayments over a fixed term.

Commercial Investment Mortgages
Ideal for purchasing property intended to generate rental income. These mortgages are structured around the potential income the property will yield and can apply to various commercial asset classes.

How Do Commercial Mortgages Work?

Commercial lenders will assess the financial health and eligibility of your business as part of the application process. Typically, a deposit of around 30% of the property’s value is required. Once approved, you'll repay the loan over an agreed term, with interest. Repayment terms can be structured as interest-only or as capital and interest, depending on your needs and the specific transaction.

Is a Commercial Mortgage Right for Your Business?

If your business is planning to purchase premises, expand its footprint, or invest in commercial property, a commercial mortgage from Mayfair Southern could be the right fit. It offers a path to long-term asset ownership and can help reduce reliance on rented space.

Start Your Application Today

Considering a commercial mortgage? Get in touch with Mayfair Southern to discuss your financing options and take the next step toward securing your commercial property.