A commercial mortgage is a specialised loan for the purchase of property used for business purposes, such as bars and pubs, office space, factories, garages, warehouses and shops. It can also be used to buy business assets such as machinery, or to take over or expand an existing business.
A critical element of commercial mortgages is that until the loan has been fully repaid, the lender has a legal claim on the property – meaning that if you default on the mortgage, the lender can repossess and sell the property.
As with a residential mortgage, you can choose between fixed and variable interest rates – but the interest on a commercial mortgage is tax-deductible.
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how to buy commercial premises
Moving into your own premises is an exciting part of the growth of any business. Our guide will help you through the process from start to finish.
guide to commercial mortgages
If you're looking to buy a property for a business, it's crucial that you understand the advantages and disadvantages of commercial mortgages. Read our guide to help you choose the best option for you and your business.
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