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Commercial Mortgages for Trading Businesses

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.

What we cover on this page

What properties can we arrange mortgages for?

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

  • Factories
  • Food outlets – takeaway
  • Garages / Vehicle showrooms
  • Holiday lets
  • Industrial units
  • Mixed use / multi let (exc residential and retail)
  • Offices
  • Retail units (lock up)
  • Retail units with commercial uppers
  • Retail units with residential uppers
  • Student accommodation
  • Warehouses
  • Bars & Pubs
  • Care homes
  • Children’s day nurseries
  • Convenience stores
  • Dental practice
  • Food outlets – restaurant
  • GP surgeries
  • Guest houses / B&Bs
  • Hotels
  • Leisure
  • Pharmacies
  • Professional practices
  • Public houses

What is a Trading Business Commercial Mortgage?

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.

Key Features: Trading Business Commercial Mortgage

  • Mortgage Range: Trading Business Mortgages from £100,000 to £50 million; subject to affordability and credit criteria
  • Loan to values: up to 75% (100% with cross charges)
  • Mortgage Term: 1 to 30 years
  • Payments: interest only / capital repayment
  • Purpose: Purchase / Refinancing / Capital Raising 
  • Income Requirements: No minimum outside income / All income types
  • No max of number of rooms / units
  • No max of number of tenancies
  • All credit histories: High Net Worth to Credit Repair
  • All applicant types: Individuals / Corporate (Ltd Co’s) / SSAS etc.
  • All tenures: Freehold / Leasehold
  • All residential tenants: Working, Students, LHA
  • All residential tenancies: AST to Corporate Leases
  • All business tenants: No restrictions on industry/sector
  • All business tenancies: Fully repairing leases / Licences

Why do you need a Commercial Mortgage for a Trading Business?

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.

Steps to Securing a Trading Business Commercial Mortgage

Step 1
Initial Consultation with Mortgage Broker

Begin with a consultation with one of our friendly mortgage brokers to discuss your investment goals, property details, and financial situation.

We will assess your needs and recommend suitable finance options.

Step 2
Loan Application

We will submit a detailed loan application, including financial statements & property details etc. Our broker team will guide you through the documentation required by lenders.

Step 3
Property Valuation

A professional valuation will be conducted to determine the property's market value, including both residential and commercial elements. This is a critical step in the mortgage application process.

Step 4
Approval, Legal & Funding

Once approved, solicitors will be instructed to carry out any legal formalities. This can be as quick as a week (if Title Insurance is used on refinance cases). Once this stage is completed funds will be released.

The Valuation Methodology is an Important Factor!

Using the services of a broker that understands how the property is valued is crucial as it affects the amount you can borrow. Most lenders will value the property as one tenure (freehold or leasehold), called a vacant possession valuation

Our mortgage brokers will carefully consider the suitable lenders for your circumstances depending on how much you are looking to raise relative to the value of the property. But the property’s value can differ depending on the valuation methodology the lender instructs the valuer to use.

With respect to semi-commercial / mixed-use properties, the biggest difference is whether the lender will use a Block value / Market Value or an aggregate/break-up value of the property.

If your property’s residential element makes up most of the overall value, some lenders can use an aggregate value that might be more advantageous. If the loan-to-value is low, we can source a buy-to-let lender that ignores the commercial valuation altogether, and the interest rate will be considerably lower.

Single Tenure Valuation

Aggregate/Break-Up Valuation

This method considers the property as one unit, combining both residential and commercial elements. It is often used for properties with a balanced split between residential and commercial spaces.

This method values each element separately, then combines the values. It can be advantageous for properties where one element significantly outweighs the other in terms of value or size.

Benefits of Trading Business Commercial Mortgages

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

Why Choose Advocate Finance for a Commercial Mortgage?

Expertise and Experience:

  • At Advocate Finance, we specialise in providing brokering services in trading business Commercial Mortgages.
  • Our team of experienced mortgage brokers have extensive knowledge of the unique challenges and opportunities associated with these types of properties. We understand the intricacies of the market and can provide expert guidance tailored to your specific needs.
  • If speed is essential to the transaction, our advisers will prioritise your case to ensure deadlines are met.
 

Tailored Financial Solutions:

  • We recognise that every client has unique financial goals and requirements. Our approach is highly personalised, ensuring that we offer tailored financial solutions that align with your investment strategy. Whether you are looking to purchase, refinance, or raise capital, we have the right mortgage product for you.
 

Competitive Fee Structure

  • We offer a FREE assessment  with one of our mortgage brokers
  • We have a no upfront fee policy
  • Our typical fee for 99% of our clients is capped at only £395!
  • Want to read what our customers say? Read our testimonials Google reviews
 

Comprehensive Range of Services:

  • Advocate Finance offers a wide array of mortgage products and services. From bridging loans and refurbishment loans to long-term buy to let financing options, we cover all aspects of property finance. Our comprehensive service range means you can find all the financial solutions you need under one roof.
  • Efficient and reliable – Known for our rapid response and dependable service, we ensure timely financial solutions. Our experienced team of mortgage brokers provide professional advice to help you navigate your commercial mortgage options, ensuring you make well-informed decisions.

FAQs on Commercial Mortgages for Trading Businesses

Loans / Mortgages ranging from £100,000 to £50 Million (smaller loans can be considered in exceptional circumstances).

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

Ready To Take The Next Step?
Get in touch today to explore your options for
Commercial Mortgages for Trading Businesses

Our expert team of mortgage brokers are here to guide you through every stage of the process.