Avail Mortgage Brokers

Commercial Mortgages - Avail Mortgages

Want to invest in an office block, retail park or cafe? Perhaps you’ve found the perfect building for your business but need a little financial support? If you’re ready to take your business to the next level but are in need of a Commercial Mortgage or Commercial Buy To Let Mortgage, then here at Avail Mortgages, we can refer you to a third party that is equipped to help you find a suitable deal. By using the service of a specialist, you can get the right mortgage for your business, which may just be the making of your business. These advisers will have the expertise and experience to assess your individual circumstances and financial situation and recommend the very best Commercial Property Mortgage or Commercial Buy To Let Mortgage for you.


Here at Avail Mortgages, we are committed to the principles laid down by the Financial Conduct Authority* (FCA) and their ‘Treating Customers Fairly’* (TCF) initiative, and this is emphasised by our glowing reviews and client testimonials. With client care at the forefront, you’ll always feel well-guided and supported during the time that you spend interacting with us, and beyond it. To learn more about Commercial Mortgages, and buy to let mortgages for commercial property, please contact us today. We support clients in areas such as LeedsHuddersfieldBradfordYork, and Harrogate as well as the rest of the UK, so we know that we can help you too.

What is a commercial mortgage?

What Is A Commercial Mortgage?

Commercial Mortgages are mortgage loans for buying or refinancing any land or property for business purposes. In the same way as with residential mortgages, with Commercial Mortgages, money is borrowed from a mortgage broker, and secured against a property. They can also be used to expand an existing business and for residential or commercial property development. Through securing a business to a property – such as a pub, restaurant or guest house – these mortgages become a great resource for financing your business plan.

Commercial Mortgages enhances business finance in a range of ways:

  • Commercial Property Mortgages can help with buying business premises.
  • They can secure land development ventures.
  • They can be used to develop an owner-occupied business.
  • You can expand your Buy To Let portfolio with a Commercial Buy To Let Mortgage.

A Commercial Property Mortgage is typically a long term loan (usually up to 25 years) that provides businesses with a mortgage loan to buy business premises. The mortgage lender will typically lend up to 70% of the property’s value, leaving the business to pay its regular mortgage payments and utilising any working capital to fund business growth.

We refer you to specialists that truly know their stuff – they’ll provide you and your business with mortgage advice, explain key differences between Commercial Mortgages and Commercial Buy To Let Mortgages and ensure you have the right mortgage for you. Therefore, if you’re looking for a mortgage in areas such as LeedsHuddersfieldBradfordYork, and Harrogate, we encourage you to get in touch with us today for a referral.

commercial mortgage eligibility

Commercial Mortgage Eligibility

To get a loan of this kind, you must pass the mortgage lender’s eligibility checks, which typically include:

  • The cash flow and any debts you may owe to assess the financial health of your company.
  • Your business’s projected income to determine whether you can cover the cost of the Commercial Mortgage loan.
  • Your ability to pay the deposit which can range from 20% to 40% of the loan.
  • Rental income may also be taken into account as this will have an effect on your business’s cash flow
  • General income, credit score and assets.

How Does A Commercial Mortgage Work?

Commercial Mortgages and Commercial Property Mortgages can be divided into two main categories:

  • Owner-Occupier Mortgages: A Commercial Owner Occupier Mortgage is used to buy property that will be used as trading premises for your business.
  • Commercial Investment Mortgages: Commercial Investment Mortgages are used for property you’re planning to let out – for example office blocks, retail parks, cafes, hotels and care homes, as well as warehouses and factories.

When it comes to the mortgage itself, you can choose between a repayment mortgage or an interest only mortgage:

Repayment Mortgage: The most favourable and widely used Commercial Mortgage repayment option, repayment mortgages involve making monthly repayments for the agreed term, until you’ve paid back both the capital and the mortgage interest*.

Interest Only Mortgages: With interest only mortgages, you only pay the interest due on the amount you borrowed each month*. Though your monthly repayments will be lower than with a repayment mortgage, you’ll still owe the amount you originally borrowed when you reach the end of your interest only mortgage term.

When you’ve selected how you’d like to repay your Commercial Mortgage or Commercial Buy To Let Mortgage, you’ll then have to choose the type of mortgage you would like. Mortgage types include: fixed rate mortgages; variable rate mortgages; discount mortgages; tracker mortgages; capped rate mortgages. Our mortgage brokers can help you weigh up the pros and cons of each mortgage interest type, securing the best deal for your business.

For some mortgage insight, many mortgages are paid at a variable rate. The mortgage rate will be quoted as X% over base or LIBOR (London Inter-bank Offered Rate*) and tracker mortgages are a popular type. Fixed rate mortgages are also available for amounts under £500,000.

It’s important to note that Commercial Mortgage rates charged for mortgages are not determined from the off-set as with personal loans. Mortgage lenders usually have a risk profile that they work to, so if your mortgage loan falls outside their risk profile, your application or Commercial Buy To Let Mortgage application may be refused.


Commercial Mortgage & Commercial Buy To Let Mortgage Fees

When it comes to Commercial Mortgages and buy to let mortgages for commercial property, there are a number of fees to be aware of:

  1. Arrangement fees: Arrangement fees are usually added to the loan, and are typically 1 – 2% of the loan amount for loans up to £1 million.

  2. Valuation Fees: A valuer will visit the property and write a report to the mortgage lender. Commercial valuations can start at around £500 for a simple case, and the valuation fees are based on a quote which is payable to the mortgage lender.

  3. Legal Fees: You’ll need to pay both your own legal fees as well as the mortgage lender’s fees which can start at £500.

  4. Mortgage Broker Fees: When you use the service provided by an advisor, you will have to pay a fee for their expertise.


Get In Touch

For Commercial Mortgages, Commercial Property Mortgages and Commercial Buy To Let Mortgages, get in touch with us for a referral to Commercial Mortgage specialists. Using their industry expertise, you’ll have the right mortgage in no time. Therefore, if you’re looking for a mortgage in Leeds, or the surrounding areas including HuddersfieldBradfordYork, and Harrogate, please don’t hesitate to contact us today.