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Welcome to Advocate Finance, your trusted broker in securing Commercial Mortgages for trading businesses!
As established mortgage brokers, we understand the unique needs of property investors and business owners, and we are here to provide tailored financial solutions that help you achieve your goals. Whether you are looking for a commercial mortgage, loan or refinance, we cover all aspects to ensure your success.
These are properties that are purchased with the intention to trade from, and are separated into two categories, below are some examples of these:
Standard Property | Trading Property |
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These are commercial and business mortgages for all types of businesses that will use the property to trade from, rather than let to a third-party tenant.
We can also arrange Semi-Commercial investment mortgages.
Also known as a Commercial Business mortgage, these are used to purchase/refinance properties with the intention to trade from.
For example, A client who has their own trading business wishes to buy/refinance a property to trade from.
High loan-to-values (LTVs) are available; 100% funding can be achieved with additional security or by introducing more than one lender to a case.
When securing a commercial mortgage for a trading business, understanding the valuation approach is essential. Choosing the right valuation method ensures accurate lending decisions and helps borrowers understand the true worth of their asset under different scenarios. Lenders typically rely on two key valuation types:
1. Market Value Including Goodwill, Fixtures and Fittings
This valuation represents the price a willing buyer would pay for the business as a going concern. It reflects the true earning potential of the business, and is useful for buyers looking to continue operations without major changes.
It includes:
Example: A restaurant with an established customer base, kitchen equipment and brand recognition will have a higher valuation under this method than the property alone.
2. Market Value – Vacant Possession
This valuation assumes the property is unoccupied and excludes any business-related assets or goodwill – It focuses solely on the property value.
It provides a clear picture of the property value independent of business performance, and is ideal for lenders assessing the security in case of repossession or resale.
Example: The same restaurant property valued under vacant possession would consider only the building and land, ignoring its trading history or equipment.
Advantages of Commercial Mortgages | Disadvantages of Commercial Mortgages |
Fixed rates are available: Commercial mortgage interest rates can be offered with high loan to values (LTV) | Variable rate mortgages can be offered: However, you will be susceptible to increases in interest rates |
Lenders can consider: All income levels, evidence of income, credit histories and funding requirements | Valuation: Commercial valuations are required, which can be more expensive than residential valuations |
Terms: Financing terms can be short or long-term to suit your needs | Tax implications: You should seek advice from your tax adviser before purchasing a commercial property |
Expertise and Experience:
Tailored Financial Solutions:
Competitive Fee Structure
Comprehensive Range of Services:
Loans / Mortgages ranging from £100,000 to £50 Million (smaller loans can be considered in exceptional circumstances) but it ultimately depends on your affordability.
You’ll need details about the property, your business, and financial statements. We’ll guide you through the process.
You can choose interest-only or capital repayment options over 1 to 30 years.
Yes, but specialist brokers like us often secure better terms and higher loan-to-values.
They’re designed for businesses that trade from the property, not rent it out. The property is valued and the loan structured accordingly.
Rates vary by lender and your circumstances. Fixed and variable options are available. Speak to one of our Advisers today for more information.
Our advisers offer a free consultation, so please give us a call or use the “Get in Touch With Us” form at the end of this page
Our expert team of mortgage brokers are here to guide you through every stage of the process.
