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3rd August 2023

Commercial Mortgages – Look No Further

Did you know that we can advise on commercial mortgages too? A very different kettle of fish! We list the different types of commercial lending below  – you can see the variables.

Here at The Finance Roome, we work very closely with relevant Lenders – strong local relationships that mean we can offer a seamless service for our clients.

Commercial mortgages

Commercial mortgages are available to a range of businesses, from sole traders to limited companies. Lenders will normally fund up to 75% of purchase costs with terms of up to 30 years. Typically, they’ll secure the mortgage against a first charge. Affordability is based on the profitability of your business, and its ability to make monthly payments.

Property development finance

Property development finance is usually in the form of a short-term loan that’s used for the development of a new building project. This can be the refurbishment of an existing property. Lenders will look to advance up to 70% of the gross development value, and terms can be up to 24 months.

Portfolio finance

A long-term business loan that’s offered to property investors who have a number of rental properties. The lender offers the ability to consolidate borrowing into one loan. The serviceability of this loan is based on rental income.

Bridging finance

Bridging finance is a short-term finance solution often favoured by property developers and investors. It offers a quick way to finance the purchase of a property. The lender will take the first charge on your property and will seek an exit once the loan has come to term.

Auction finance

Auction finance is designed for experienced property developers and landlords. It’s a way of arranging funding in advance of an auction. You need to know the property value and type you can finance before you walk into the auction room.

Mezzanine finance

A little more complex, this is a hybrid type of finance that combines elements of debt financing and equity investment. It is secured against the property. Mezzanine finance often helps property developers reduce their cash flow requirements. This might enable them to finance projects that would normally require a larger capital share.


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