Commercal mortgages are secured on buildings such as factories and offices. But they can also include shops, pubs, restaurants, clubs or even some types of buy to let properties. You can also get a commercial mortgage on a property that has a residential element to it such as a flat over a shop.
These types of mortgages can be held in the name of limited companies, partnerships or individuals.
The maximum borrowing amount tends to be lower than that of a residential mortgage - typically 65% - 75%. Some examples of the uses for a commercial mortgage can include; Business expansion, Working Capital raising, Business turnaround solutions, Short Term Finance and debt consolidation, Property improvemen and New business start-ups.
There are a number of lesser known lenders available (as well as the high street banks) with rates from as low as 2.5%.
It is important to remember commercial mortgages are not regulated by the Financial Conduct Authority.