Comparing Commercial Mortgage Lenders

Commercial mortgage lenders are typically used by businesses seeking money to purchase or invest in business properties. Commercial mortgages are never held against your personal assets, meaning your home or other asset will not be at risk if you fail to meet repayments.

There are two types of commercial loans:

  • A business mortgage – typically intended to buy premises that your own company will be working from
  • Commercial investment mortgages – used to buy property that is then rented out to other companies.

Whatever the right mortgage for you, you can expect to have a repayment period of over 3 years, though some lenders may accept shorter-term loans for smaller amounts.

At Think Business Loans, we are able to help you find the best lender through the use of our iFunds matching software. By filling in your details on our online form, we can match you to any commercial mortgage providers that are most likely to accept your application and cut out a lot of legwork on your part. One simple form will give you access to a wealth of different lenders that have a high chance of accepting your application should you choose to apply, as we’ll only connect you to those you meet eligibility for, so you can compare without wasting time!

Comparing commercial mortgages with Think Business Loans gives you the chance to get an overview of the right commercial mortgage lenders for your business without the inconvenience of searching through thousands of them yourself. We give you the chance to take back control over your business finances by helping you cut down on valuable time and manpower that could be put back into your business. A simple comparison is all it takes to find a lender and secure a commercial mortgage and our iFunds software will help ensure that this happens quickly, conveniently and efficiently.

  • Refurbishment of Business Premises
  • Development of Business or Residential properties
  • HMO's
  • Buy-To-Let options
  • Commercial investment into commercial units

Why Choose A Commercial Mortgage Comparison Company?

If you’re searching for a commercial mortgage, comparing lenders dependent on your eligibility criteria, what you need and what you can afford could ultimately save you money in the long-term. Not only will you be given easy access to a range of different loan prices and types, but the ease and speed makes using a commercial mortgage comparison company simple and convenient. Some of the benefits include:

  • Speed – You can find all the results you need without having to do any of the legwork. A simple comparison will give you all of the information you need in minutes rather than the hours or days it might take you to do the same manually.
  • Convenience – We understand that time is money in business and the last thing you want is to spend valuable time scouring the internet for quotes. Our comparison service compiles all of the information together for quick, convenient review so you can choose what you need.
  • Close Matches – We only show you lenders that you’re likely to be eligible to work with, so you can rest assured that you won’t waste any time or energy on irrelevant services. We provide close matches so you have a clearer snapshot of what’s on offer.

Did You Know…?

  • Did You Know that deposits are around 20-30%? Every mortgage needs a deposit and commercial mortgages are no exception. Lenders expect between 20%-30% of the total mortgage amount as a deposit though the higher you can pay, the better.
  • Did You Know that the deposit you can pay may affect your interest rate? Lenders determine interest rates according to risk so the more you can give them at the start, the lower the interest will be.
  • Did You Know the lenders on offer could depend on your business? Your budget, business type and building all have an effect on whether a lender will loan you a mortgage!

What Is The Criteria For A Commercial Mortgage?

The success of your application will ultimately depend on the lender you’re looking to apply with, however, each lender will usually follow the same steps when determining your eligibility.

In general, the first thing that any commercial mortgage lenders will look at is your business accounts, profit projections and the value of the property that you’re looking to invest in. This will all be compiled together to determine whether you can truly afford the loan and whether the lender might be at risk if they decided to accept your application. These affordability checks are designed to protect you against loans that you cannot afford to pay back. Our comparison tool reduces this risk by only providing you with lenders that match your business status, however, it’s important to note that our answers are only provisional.

Fear not, however, as even those with an adverse credit history could still be accepted by commercial mortgage providers. You may have access to fewer lenders than another business with better credit, but the checks mentioned above play a huge part in the acceptance or rejection of your application. You may face higher interest rates or a shorter repayment period in order for the lender to counteract risk, but you may still be accepted regardless.

It is important to remember, however, that there is no universal criterion, and that each individual lender will use their own lending criteria when determining whether or not to approve your application.

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What Are The Alternatives To A Commercial Mortgage?

While commercial mortgage lenders are useful for those seeking amounts of £25,000 and above, those wanting something smaller could benefit from an alternate type of loan.

While commercial loans are ideal for business property ventures, bridging loans could provide a short-term solution for a quick, convenient cash injection for any development projects your business is currently involved with. While these loans are mainly used on property-related projects, they could be used for alternative funding, dependent on your needs.

Unsecured business loans could also prove useful for companies that may not have any valuable assets available to use as collateral. While most lenders of unsecured loans may come with high interest rates and shorter repayment periods, businesses looking for a bit of funding to help them through a worthwhile investment until they can build up the capital themselves may benefit from this short-term alternative. The lender takes the risk here, meaning that your business assets are protected. However, commercial mortgage providers could be the better option for larger amounts of money due to longer repayment periods.