Commercial Mortgages
Let Drummonds Finance Group help you achieve your commercial mortgage.
Commercial Mortgages Made Simple
When it comes to financing property, most people are familiar with residential mortgages—but commercial mortgages are a different proposition altogether. Designed for those looking to purchase or refinance property or land intended for business or investment purposes, commercial mortgages offer tailored solutions to meet more complex financial needs.
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Whether you're a business owner seeking premises for operations or an investor looking to expand your commercial portfolio, understanding how commercial mortgages work is essential. These types of loans come with unique requirements, lending criteria, and a significantly more involved application process compared to standard residential mortgages.
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In this guide, we’ll explore what commercial mortgages are, who they’re suitable for, and why expert advice is crucial when navigating this specialised area of finance.
Commercial Mortgages: What You Need to Know
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A commercial mortgage is a type of loan specifically designed to help individuals and businesses purchase or refinance property or land that will be used for commercial or investment purposes. These types of mortgages are commonly used for buying office buildings, warehouses, retail units, industrial sites, or even land intended for commercial development.
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In addition to owner-occupied premises, commercial mortgages can also be suitable for investors looking to expand their property portfolios. Whether it's a single unit or a larger portfolio of properties, a commercial mortgage can help fund the purchase or restructure existing finance to achieve more favourable terms.
Key Characteristics of Commercial Mortgages
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Unlike residential mortgages, commercial mortgage products are not typically available from high street lenders and can be difficult to access without the right guidance. The application process is more complex and often involves a greater level of scrutiny. Since the loan is issued to a business entity rather than an individual, lenders will assess a wider range of factors, including:
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Due to the bespoke nature of these mortgages, every application is assessed individually. There is no ‘one-size-fits-all’ product in the commercial mortgage market—pricing, terms, and conditions are tailored to each specific case based on the perceived risk, the property type, and the financial standing of the applicant.
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Limited Access and Specialised Knowledge Required
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The commercial mortgage market is highly specialised, and access to suitable lenders and products can be limited—especially for those unfamiliar with the landscape. Having the right broker or adviser can make a significant difference in navigating lender requirements, preparing robust applications, and ultimately securing funding.
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Business Financials:
Past and projected performance, profit and loss statements, and balance sheets.
Creditworthiness:
Credit history of the business and its directors.
Loan-to-Value (LTV) Ratio:
Typically lower than residential mortgages, often around 65–75%.
Repayment Structure:
May include interest-only periods, fixed or variable rates, and flexible
Security Offered:
The property itself is used as security, but lenders may also require personal guarantees or additional assets as collateral.
Our Position at Drummonds Finance Group
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At Drummonds Finance Group, we understand that commercial mortgage enquiries require specialist attention. While we are not authorised to provide advice on commercial mortgage products, we have established relationships with trusted and experienced professionals in this field.
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If you are considering a commercial mortgage—whether to purchase business premises or invest in commercial property—we would be happy to refer you to a reputable firm that specialises in this area. Their expertise can help ensure your application is handled efficiently and positioned for success.