Commercial Loans

Commercial investment mortgages are designed for individuals and companies purchasing a business property as an asset, profiting from rents and property value appreciation.

Typical examples of when a Commercial investment loan would apply would be shopping centres, Industrial Estates, Agricultural Land, Office Buildings and mixed use properties. On Commercial Investment Loans the lender looks at 3 main areas. The calibre of the tenant. This determines the yield and thus the value of the asset. The security of the individual or company taking the loan out. A personal guarantee is often required as security for the lender for part of or all of the loan.

Lending on these loans are typically set on a margin above bank of England base rate of between 1-2%.The typical loan to value of commercial investment loans is typically 75-80%.