A commercial mortgage is any loan secured on property which is not your residence. Buy to let mortgages are a special type of high volume commercial mortgage which is packaged for a volume market. But since almost every other kind of premises are different, each loan is assessed individually and priced according to the risk
Commercial mortgages generally take over where business loans finish. Business loans up to £25,000 are unsecured, but for larger amounts lenders need security to reduce the risk to themselves. Because of the legal and administrative costs of taking security on commercial property it is considered uneconomic to borrow under £50,000 this way, and some lenders have a minimum of £75,000 or more.
Commercial mortgages can be utilised for properties that businesses will trade from or as a way of purchasing an investment property. Due to their complexity, a knowledge of the industry is recommended when arranging
Commercial mortgages can be utilised for properties that businesses will trade from or as a way of purchasing an investment such as a buy-to-let. They can be seen as a complex form of lending, therefore knowledge of the industry is recommended when arranging.