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Commercial property typically refers to any property which contains a trading business but can also include large residential rental properties like blocks of flats, and land that generates an income. With such a broad spectrum of property possibilities, commercial mortgage lenders have varying approaches and appetites for different properties and business types. At MFB, our specialist commercial team have dealt with almost every commercial property and business type. However, here are some of the sectors we deal with most often:

• Retail (e.g., shops and high street services)
• Large residential (e.g., MUFBs)
• Hotels
• Hospitality (e.g., Pubs and Restaurants)
• Childcare businesses
• Care-homes

Lenders prefer commercial investment borrowers to have some letting experience before considering your application. Letting out residential property is a good place to start, as this comes with less risk than commercial property. However, commercial lenders are more likely to consider applications on a case-by-case basis, so if you want to get into commercial property investment, call us.

Commercial mortgage interest rates vary depending on many aspects, including property type, business sector, loan to value (LTV) and you, the borrower. The best way to get an accurate idea of how much a commercial mortgage would cost for your circumstances is to speak to one of our experts.

Like most mortgages, commercial finance does come with additional fees you’ll need to consider and factor into your costs. These include (but are not limited to): 

• Lender arrangement fee – usually 1-2% of the loan amount. Depending on the lender, you will either pay this upon completion or include it in the loan. 
• Valuation fee – the cost of this will depend on the property type, location and value. You’re usually expected to pay the valuation fee during the application process.
• Legal fees – this will depend entirely on the solicitor you use and your case's complexity.