Businesses involved in the leisure industry use commercial mortgages to finance many types of property including hotels, pubs, restaurants, guest houses, bed and breakfasts, cinemas and health clubs.

Professional businesses such as dentists, doctors, accountants, vets, solicitors, chiropractors and financial advisors will often use a commercial mortgage to buy property in a desirable location that is suitable to provide business premises such as practices and offices.

Health care providers require commercial mortgages to purchase property that will be used to provide residential care, nursing homes and also special needs homes.

Businesses involved in retail use commercial mortgages to fund retail units such as warehouses, distribution centres, supermarkets, shop units, post offices and fast food premises.

Manufacturing businesses can raise large amounts of finance through commercial mortgages to build or buy existing factory units and storage facilities such as warehouses.

Searching for commercial mortgages is unlike looking for a domestic or buy to let mortgage where it is easy to look up or search what interest rates each different lender is charging, in addition to any special deals that they maybe offering as an incentive to take a mortgage out with them. A commercial mortgage lender will look at each proposal and firstly decide if they would like to lend and if so what rate they would want to charge for the business mortgage facility. Different lenders will have their preferred types of business and are likely to offer a cheaper interest rate if the application for a commercial mortgage is from a business on their preferred list.

The banks and other lending institutions will all have their own area of expertise and providing commercial mortgages to businesses that they have a good understanding of, is easier and more comfortable for them. In addition to businesses that they know and understand the lenders will also favour other types of businesses to provide their business mortgages to. These will be businesses involved in industries that they consider to have a good future, for example businesses involved in the care industry will find it easier and less expensive to find a commercial mortgage than businesses that have any sizeable involvement in the tobacco industry.

If you would like to work out how much a commercial mortgage will cost for different interest rates and different repayment terms you can try our easy to use online commercial mortgage calculator which is similar to our buy to let mortgage calculator.

On your initial call we will deal with a simple application process which will enable us to determine how much bridging finance you require and how much it will cost. The processing of the loan is very straight forward, the most important requirement is a valuation on the security that is being offered. If a suitable valuation report is available and this is acceptable to the bridging loan provider then this will save some time, but in most circumstances a valuation report will be required in order to obtain a bridging loan.

Both commercial bridging loans and residential bridging loans can usually be secured on one or more properties. The greater the amount of security available will be reflected by interest rates and costs. Basically the greater the security available the better the bridging loan deal, however each property will require a valuation and valuation costs should be taken into consideration.

There are many bridging lenders and it is important to find the best deal that suits your individual requirements and circumstances. Options are available for applicants who have County Court Judgements, defaults, current or past arrears, IVAs and even bankruptcy. Different lenders have their own requirements for the amount of security they require for their bridging loans, and the amount of security available will often be reflected in the bridging loan interest rates.

Different bridging loan providers will have their own terms for how long they will provide a bridging loan for, but most lenders are happy to lend for periods up to 6 months and many will lend up to 12 months.

Interest is charged monthly and in most circumstances a monthly payment will be required to pay the interest charged each month on a bridging loan. However bridging facilities are available that will enable the monthly interest to be accrued over a period of time and added to the bridging loan facility which will be cleared when the loan is redeemed. When taking out a bridging loan facility that requires interest to be paid monthly it is important to ensure that funds will be available each month.

Some Additional notes

A popular use of bridging loans is for buying property at auction. This is because having bid successfully on a property at auction the buyer normally pays 10% of the purchase price immediately and has just 28 days to complete the purchase. If the buyer cannot complete the purchase within 28 days they then risk losing the 10% deposit. Because bridging finance can be arranged quickly it is often used as a funding method to complete the purchase.