Commercial Mortgages from MCB Financial Services
There are two types of commercial mortgage – a business mortgage for trading premises and a commercial investment mortgage for those looking to invest in commercial property. MCB Financial Services can source both.
- Commercial Mortgage
- Borrow up to 75% loan to value
- Borrow more than 75% with added security
- Mortgage term of 3-30 years
- Maximum borrower age 85 years
Rates for business mortgages are dependent on your industry sector, by the strength and performance of your business and your own individual track record.
For a commercial investment mortgage, the terms you will be offered will depend upon the size of your deposit, the industry sector, the quality of tenant, the length of the lease and the applicant’s investment experience.
To discuss your borrowing requirements and find out what rate you can expect to pay, give us a call on 01603 864760.
Examples of properties appropriate for a commercial mortgage:
- Mortgages for Freehold public houses
- Commercial mortgages for offices
- Mortgages for convenience stores and retail units
- Commercial mortgages for factories and warehouses
- Mortgages for Land
- HMO (houses in multiple occupancy) mortgages
- Nursing home mortgages
- Commercial mortgages for industrial units
- Care home mortgages
- Specialist buy to lets for flats under one freehold title
- Owner occupation commercial mortgages
- Restaurant mortgages
- Commercial mortgages for investment purposes
Our advisors will run through a full fact find with you before researching the market. After we have presented our advice the next step will be to submit a full application where we will require the following documents:
- Business and personal bank statements (minimum 3-6 months)
- Copy of your ID
- Asset and Liability statement (in our forms section)
- Proof of income via accounts for the last 3 years
- Summary of business experience
The lender may require further information whilst your application is being underwritten.
Commercial mortgage transactions are subject to the following fees:
- Lender arrangement fee
Payable to the commercial mortgage lender for arranging the finance. This will either be added to the overall loan or deducted from the loan at completion. Some lenders may take part of the arrangement fee as a commitment fee on acceptance of the lender’s formal mortgage offer.
- Valuation fee
The lender will require the property to be valued by one of their panel valuers. The valuation fee is usually paid on submission of the application or once the facility has been agreed in principle. Please be aware that due to their more complex nature, valuations on commercial properties are usually more expensive than valuations for residential property.
- Legal fees
Many commercial lenders require separate legal representation and this is paid for by the borrower. In addition the borrower will often have further legal fees payable to their own solicitor. Given the nature and complexity of titles and covenants on many commercial properties, a higher legal cost is usually incurred compared to legal fees for residential property.
We charge a success-only broker fee, typically up to 1% of the loan amount. This fee is due on successful receipt of a formal mortgage offer from the commercial mortgage lender. To discuss this broker fee in more detail please contact one of our advisors.
In addition we may also charge an initial administration fee for the work involved in submitting the application to the lender for an initial decision. This administration fee is normally deducted from the Broker Fee. This fee is typically £295.
To discuss your borrowing requirements please contact us on 01603 864760.
Please download and view our documents.