Commercial Mortgages & Finance FAQs
What’s the difference between a commercial mortgage and a residential mortgage?
The premise is the same. The mortgage is a loan that’s secured against the property.
However, a commercial mortgage is secured against business premises. You can remortgage an existing loan that’s secured against an existing commercial property, or you can use it to raise finance for your business.
Can I get a commercial mortgage for a new business?
Yes. The eligibility criteria will vary from lender to lender, but we should be able to find one that works for you.
Do I need a deposit for a commercial mortgage?
Yes. The size of your deposit will vary according to the amount you want to borrow and the lender’s terms and conditions. To give you a ball-park figure, typically 25% of the total value property is required for a commercial mortgage deposit.
Development Finance FAQs
How much can I borrow?
The maximum amount varies from lender to lender. Some lenders offer tens of thousands, while others lend as much as millions. Speak to our advisers about your requirements.
What type of developments can I get funding for?
You can get development finance on a range of projects including: new builds, refurbishments, residential properties and commercial properties.
Can first time developers get development finance?
Yes. There are lenders who provide funding to first time developers. However, you’ll need to meet their eligibility criteria, and run through some checks with the lender.
Bridging Finance FAQs
What are the benefits of bridging loans?
- Speed: We can arrange bridging loans very quickly. If you need fast access to funding, this is a viable option.
- No break fees: You can repay bridging loans early without incurring penalties. This usually saves you money on interest
- Flexibility: These loans allow borrowing against properties that are not suitable for a mortgage
What are the alternatives to bridging loans?
Possible alternatives are:
- Mortgaging the second property: you’d get a loan with a longer term, but it may work out cheaper in the long run
- Unsecured personal loans: you can borrow up to £50,000. These loans tend to have annual interest rates, which means they can be less expensive overall. We do not provide advice on unsecured personal loans
What are the risks?
- Double mortgage payments: If you use the loan to purchase a new house before you find a seller for your current home, you risk paying for two properties concurrently.
- High interest rates: Bridging loans are designed to be short-term, high-value borrowing. Lenders often expect high returns, which means they charge high interest rates. Missing a repayment can incur large fees
- Losing your property: Lenders secure the debt against the property. You risk losing the property if you cannot afford the repayments
Can I get a bridging loan if I have a bad credit rating?
Yes. Even with bad credit you stand a chance of being accepted for a bridging loan. Our advisers can talk you through your options. Taking out a bridging loan and meeting your repayments can even help to improve your credit score.