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St Barts Finance LTD is an appointed representative of The Openwork Partnership Limited, which is authorised and regulated by the Financial Conduct Authority
Your Local Commercial Mortgage Broker
Welcome to St Barts Finance, your local commercial mortgage broker. We are a financial adviser that specialises in a wide range of services in the financial sector and have been serving our clients since 2009.
Our aim is to provide our clients with a service that we would expect and want to receive ourselves. Customer service is the most important part of our business.
We have a fantastic team of mortgage brokers who can help and support you with your mortgage needs. Whether you need a commercial mortgage or something else, our advisers are both experienced and knowledgeable and are 100% committed to providing you with the best service possible.
If you’re here looking for information on commercial mortgages then please carry on reading as you’ll find all your questions answered below.
If you want more information or want to start your commercial mortgage application today, then please call us on 03300 562 218 or send an email to [email protected].
Alternatively, you can book an appointment with a mortgage broker here.
A Guide on Commercial Mortgages
What is a Commercial Mortgage?
In the following information below you’ll find all you need to know about commercial mortgages, why they can be beneficial to you how to apply for one and why it’s best to speak with a commercial mortgage broker.
If you’d rather just speak to one of our commercial mortgage brokers straight away, feel free to book an appointment or give us a call.
In a nutshell, a commercial mortgage is any loan secured on property which is not your residence. Commercial mortgages are also sometimes called ‘business mortgages’, and are for business owners who purchase property or land intended for commercial use.
As your business grows and you’ve employed new staff or your demand has increased, you might want to consider opening new premises to have more space to operate. This is where a commercial mortgage can come in handy.
Commercial mortgages are a popular option for most business owners in this scenario because they could help them save money on rent, maintenance, and management fees, which are typical costs associated with renting.
What are the Benefits of a Commercial Mortgage?
Owning commercial property definitely has its benefits.
Here are some of the main advantages of a commercial mortgage:
Lower Interest Rates – In most cases, commercial mortgages have lower interest rates when compared with other types of business loans. The typical repayment structure in commercial mortgages involves a fixed monthly payment, which is a big benefit for business owners as this can be easily factored into business outgoings and therefore provide increased accuracy in forecasting.
Capital Gains – Investing in property is becoming more and more popular due to the long term financial gains associated with the ever-increasing property market. If you’re property increases in value, you could also see an increase in capital.
Potential for Rental Income – If you have some space within your premises that you aren’t using, you could potentially rent it out and make some extra income.
Cheaper than Renting – Most commercial mortgage monthly repayments can work out cheaper than renting or are equivalent to. However, where the magic happens is the long-term equity you can build within the property as you own it.
Commercial Mortgage FAQS
Please see below some of the most popular questions our mortgage advisers get asked.
As with any financial service, it’s always recommended that you speak with a specialist, to ensure you get the best deals possible so you can maximise your finances. If you’re looking at applying for a mortgage of any kind, it’s particularly important to get professional advice.
At St Barts Finance, we have a team of mortgage brokers that are experienced in dealing with commercial mortgage applications and would be more than happy to answer any questions you have.
We strongly urge you to reach out to a commercial mortgage broker as it can have many benefits:
You could save time and money
Researching the best mortgage deals available can be time-consuming, especially if you’re not sure what to look for. A commercial mortgage broker can save you time by quickly identifying what you need and what deal is best for you. Additionally, a mortgage broker can save you money as they will often know what the best deals are.
Access to more products
Most mortgage brokers will be connected to a range of different companies and lenders within the industry and therefore will have access to a wider range of products – which will increase your chances of getting a better deal.
Expert and trustworthy support
Mortgage brokers in the UK need to be certified, so you can be certain that anyone you speak with has the right level of knowledge and experience to deal with your application as efficiently as possible.
Our mortgage brokers at St Barts Finance have an abundance of knowledge and have previously worked for highstreet branks and building societies such as HSBC, Halifax, Virgin Money and Nationwide.
Through our compliance network, The Openwork Partnership, we ensure our advisers are always improving and expanding their skill set through additional qualifications and training courses.
It saves the stress and headaches
Applying for a mortgage of any kind can often be stressful, overwhelming and downright frustrating, especially when your application gets held up for a particular reason, which is more common than you think.
Seeking advice from a commercial mortgage broker can remove the stress and ensure your application process goes smoothly.
Often referred to as business mortgages, commercial mortgages are designed to fund the purchase of a premise intended for commercial use or to buy an existing business.
Generally speaking, any property that generates an income can be bought using commercial mortgages, for example, retail outlets, restaurants, office buildings etc.
If you buy property or land that exceeds a price of £150,000, you are legally required to pay SDLT or Stamp Duty Land Tax.
Stamp duty rates on the commercial property vary, with purchases up to £250,000 being 2% and anything above this can be up to 5%.
The most common types of properties that commercial mortgages are used for are:
- Cafes
- Restaurants
- Shops and retain unites
- Professional practices such as dentistry
- Offices
- Factories and warehouses
- Hotels and guesthouses
If you’d like to be connected with your local commercial mortgage broker, then St Barts Finance is here to help. Although our headquarters are in Bournemouth and we have other branches in Poole, Charminster, Salisbury, Southampton and Somerset, we actually operate throughout the entire UK.
So if you want some more information on commercial mortgages or any other mortgage-related query, please get in touch with our team today. You can simply book an appointment here.
Just like any mortgage, the mortgage will vary depending on a number of factors. However, on average most commercial mortgages last between 3 and 25 years.
Anything less than this is usually called a ‘commercial bridging loan’ which is a short term loan secured against the property.
As with most mortgage applications, the criteria can be fairly in-depth and strict. Commercial mortgages often have a few checks within the application that you must be able to pass in order to be deemed suitable and ‘not a risk’.
In order to get a commercial mortgage you’ll have to pass the following eligibility checks:
- Provide evidence of positive cash flow and any debts you owe
- Projected income of your business to ascertain if you can afford the repayments
- Can you afford the deposit? The required deposit is usually much higher than other types of mortgages, typically starting at 25%.
- Other income evidence, i.e any other assets you may have
- Credit check
Every mortgage application is unique and therefore how long it takes to be approved can be determined by a number of factors.
A basic decision in principle which is usually conducted very early on in the application process can take around 24 hours to process.
For the full commercial mortgage application to be approved it’s very difficult to put a number on it, as it completely depends on your current situation and if you can meet the criteria.
The best thing to do is speak with a commercial mortgage broker who can assist you further.
The obvious difference between a residential and commercial mortgage is that one is used to buy a residence, such as a house or flat, and the other is used to property for business purposes.
Other differences include:
- Interest rates
- Mortgage term
- Loan to Value (LVT)
- Mortgage application criteria
- Regulations
Other Mortgage Services
As well as commercial mortgages, our mortgage brokers can provide a wide range of other mortgage solutions, all tailored to meet your needs and requirements.
Here are some of the mortgage services we have available:
Mortgage Capacity Report
If you’re recently divorced or separated, then you might be interested in our mortgage capacity report service. A mortgage capacity report is a detailed document that states the amount and what type of mortgage you could get after a divorce or separation.
This is usually requested by the courts when deciding on financial splits of assets, so it’s crucial that the mortgage capacity assessment and report are carried out by a specialist.
At St Barts Finance, we have mortgage advisors who are very experienced and knowledgeable when it comes to mortgage capacity reports, so give us a call today.
If you’d like more information, here is a sample report for you to look at. Or alternatively, request a mortgage capacity report from our team online.
Contact Our Commercial Mortgage Brokers Today
At St Barts Finance, we are proud to offer our clients nothing less than the finest mortgage advice they can find. We have a dedicated team of financial advisers who are on hand to help you find the right mortgage for your needs and current circumstances.
We hope you’ve found our information on commercial mortgages helpful. If you’d like some more information or want to get the ball rolling on your commercial mortgage application, why not get in touch with a commercial mortgage broker today. If you’re in the local area, why not pop down to one of our local branches in Bournemouth.
The best way to contact us is by using our online booking system, or alternatively, you can call us on 03300 562 218 or send an email to [email protected].
