Commercial mortgages, explained simply
No jargon and no assumptions, just short, plain-English guides to help you understand your options before you borrow. Free to read, written for people new to commercial property finance.
The basics
What is a commercial mortgage?
A simple explanation of what a commercial mortgage is, how it differs from a home mortgage, and who they are for.
Trading (owner-occupier) vs investment mortgages
The single most important distinction in commercial lending: are you buying premises to trade from, or to rent out? Here is what changes.
Commercial mortgage jargon buster
A plain-English glossary of the terms you’ll come across, all in one place.
Commercial mortgage FAQs
Quick answers to the questions people ask most often.
Property types
Commercial vs semi-commercial property, and how lenders classify it
A shop is commercial. A flat is residential. But a shop with a flat above is "semi-commercial", and lenders treat it in surprisingly different ways.
EPC ratings and commercial mortgages
A property’s energy rating can affect which lenders will help. Here is the short version.
Paying it back
Interest only vs capital & repayment
Should you pay just the interest each month, or chip away at the balance too? The difference affects your monthly cost, and what you owe at the end.
Fixed vs variable rates
A fixed rate gives you certainty; a variable rate moves with the market. Here is how to weigh them up.
Company & security
What is a debenture, and why do lenders ask for one?
If you borrow through a limited company, a lender may take a "debenture". Here is what that means in plain English, and the pros and cons.
What is an SPV, and when are they used?
Many commercial and investment properties are bought through an "SPV". Here is what that is, why people use one, and the trade-offs.
What is a personal guarantee?
When a company borrows, the lender often asks the directors to stand behind the loan personally. Here is what that commitment means.
Costs & process
Loan-to-value (LTV) explained
LTV is the number lenders care about most. Here is what it means and why a lower one usually gets you a better deal.
Deposits, fees and the real cost
The monthly payment is only part of the picture. Here are the other costs to budget for with a commercial mortgage.
How lenders decide, and what to have ready
A quick look at what a commercial lender assesses, and the documents that make an application go smoothly.