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Commercial Finance

A commercial mortgage is finance that allows you to secure a large loan on a business premise. Commercial finance mortgages allow companies to purchase property that be either used by the business themselves for their business operations or can be rented out to other businesses. These commercial properties could include retail units, office space and warehousing and more.

The Commercial Finance Guide

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What is a commercial mortgage?

A commercial mortgage is finance that allows you to secure a large loan on a business premise. Commercial finance mortgages allow companies to purchase property that be either used by the business themselves for their business operations or can be rented out to other businesses. These commercial properties could include retail units, office space and warehousing and more.

Differences between Commercial Mortgages and Corporate Loans

Active Mortgages - The UK's Leading Mortgage & Finance Specialists

Corporate loans and corporate mortgages are both types of finance that is available to businesses in the UK. A commercial loan is available up to £25,000 and is not secured against any property. Corporate mortgages are a business loan over £25,001 which needs to be secured against a property because it is deemed a riskier investment due to its size, so the risk needs to be mitigated.

If you miss payments on a commercial mortgage, you risk losing your property. Therefore, it is vital that you assess your financial situation and your affordability for the monthly repayments, as well as the deposit.

Differences between Commercial Mortgages and Regular Mortgages

Whilst there are many similarities between commercial and retail mortgages; you need to prove your affordability, prove your identity, and leave a deposit. However, there are important difference to note.

Typically, commercial mortgage lenders require a significantly higher deposit from their applicants with a lower loan-to-value (LTV) ratio – typically around 75%. This is when you will utilise the property yourself rather than rent it out to tenants. If you are letting the property, then the LTV will be lower – around 65%.

As corporate mortgages are considered higher risk, lenders will offer higher interest rates than on regular mortgages, usually only on a variable rate plan as well. If you have a bad credit history, this rate is likely to increase as well.

Active Mortgages - The UK's Leading Mortgage & Finance Specialists

Finding the right Corporate Mortgage Deal

Whether it is your first or you tenth purchase of a commercial property, finding the right corporate mortgage is complicated and time consuming. An experienced and specialised mortgage adviser can help you find the right mortgage deal for you, finding the highest LTV possible with the best interest rate possible.

Commercial mortgages are adapted to each application and the mortgage lender will create a bespoke deal for each applicant. Active’s experienced advisers will help you with every step of the process and you can rely on them to be working with your best interests at heart.

The specialist team at Active is ready to make your commercial property dreams happen. Booking a consultation is easy…

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Active Mortgages - The UK's Leading Mortgage & Finance Specialists

The 7 Commercial Mortgage Mistakes Guide

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What our customers say

Daniel Couchman
Daniel Couchman
12 January 2024
This review is long overdue - Active mortgages got us our dream home! I spoke with around 7 different brokers from different companies which didn’t know what they were talking about but then I found Simon at active - he was straight to the point and got us the best deal and the highest amount possible. I got a bit impatient at one point but that was due to the banks taking ages to process everything - active were calm and reassured us. Highly recommended. Excellent from start to finish Even sent us a gift for Xmas - thank you!
Meena Kanagavel
Meena Kanagavel
2 January 2024
Jamie Murray from Active Mortgages has been amazing in setting up the VAT loan, whilst we purchased our Land. Right from the start, Jamie has been proactive in finding the correct (BEST) deals for us and ensured everyone is aligned to complete on time.Highly recommend using Active Mortgages, and we would certainly be using them again for future projects.Thanks once again Jamie for all your support throughout Dec, appreciate your efforts in making sure our purchase was done on time. Many thanks Meena (and Mark Jones)
Stefan Stancila
Stefan Stancila
21 December 2023
Comprehensive advice from Jamie & easy communication through remortgage process . Recommend!
Yasmin Bates
Yasmin Bates
20 December 2023
Jamie has made the whole process of buying a house very straightforward, especially for self employed. Would 100% recommend and would use again too!
Gerard
Gerard
19 December 2023
Good experience, helped us every step of the way.
darren john coggins
darren john coggins
12 December 2023
Dan has been great from start to finish. As a first time buyer it can be quite overwhelming and confusing but Dan has went above and beyond. His process was very easy, efficient and we could not recommend him enough!
FUNMI AKINLAMI
FUNMI AKINLAMI
7 December 2023
Excellent service, hard working staff
akinlami akinwale
akinlami akinwale
7 December 2023
Excellent service, very patient and willing to help staff
Michael Bennett
Michael Bennett
5 December 2023
Dan has been great from the first phone call. He has made everything simple and taken the time to explain everything to me as a first time buyer, answering any questions I have along the way, highly recommend
james whitaker
james whitaker
31 October 2023
Great professional service highly recommended for anything financial
Active Mortgages - The UK's Leading Mortgage & Finance Specialists

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