Commercial Mortgage Criteria

Commercial mortgage eligibility checks vary significantly from one lender to the next. The information below is provided for reference purposes only, please consult with one of our brokers directly for more accurate information on commercial mortgage criteria:

Loan Sizes

Commercial mortgages are typically issued with a minimum loan amount of £10,000 and no upper limits.

Repayment Terms

Most commercial mortgage specialists allow borrowers to repay their loans over terms of 5 to 30 years.

Acceptable Security

It is important to remember that along with the type of property used to secure the loan, lenders may also consider its condition at the time of the application. Most lenders are willing to consider a wide variety of commercial and residential property types, including but not limited to the following:

  • Hotels and guest houses
  • Shops and retail units
  • Bars and restaurants
  • Professional practices
  • Industrial units
  • Offices and business premises
  • Various types of land
  • Factories and warehouses
  • Business Parks
  • Multi-purpose units

Acceptable Borrowers

Commercial mortgage applications are welcomed from most businesses in the UK, including but not limited to the following business types:

  • Limited companies
  • Partnerships
  • Offshore companies
  • Sole traders
  • LLPs

It is typically a requirement for the primary applicant to be between the ages of 18 and 75, though applications may still be considered from individuals over the age of 75. Seek independent broker support if the primary applicant does not meet the minimum or maximum age requirements of your chosen lender.

Geographical Restrictions

Most commercial mortgage specialists are willing to accept applications from customers across the UK and Northern Ireland, though some limit their services to mainland Great Britain or England and Wales exclusively.

Credit Checks

Most commercial mortgage lenders will conduct credit history checks as part of the application process. Though this does not mean that an imperfect credit history will prevent you from qualifying for a competitive commercial mortgage.

If you have imperfect credit or a history of bankruptcy or insolvency, it is essential to target specialist lenders to suit your requirements with the support of an independent broker.

Income Evidence

If evidence of income is required, which is usually the case with most lenders, you will be required to provide evidence of your financial performance with two years of accounts.

Lender Meetings

It is often possible to arrange a commercial mortgage with no meetings or interviews required, but some lenders prefer to meet applicants in person, before providing them with a formal offer. If you are asked to attend a meeting, and you refuse the invitation, your application is likely to be declined.

If you go ahead and accept the lender’s invitation, you can expect to be asked a series of questions about your objectives, your outlook, and the general performance of your business. In all instances, your broker will help you prepare for any lender meetings that you are required to attend.

Independent Broker Support…

The advice and input of an experienced independent broker could prove invaluable throughout all steps of the application process.

For more information or to discuss your requirements in more detail, book your obligation-free consultation with a member of our support team today.