Commercial Mortgages for Retail Premises
Flexible finance for your
shops and retail buisinesses
What is a commercial mortgage for retail premises?
A commercial mortgage for a retail premises is a loan used to purchase or remortgage properties intended for retail use. These types of commercial mortgages are based on the property’s income potential and the business's financial stability.
These mortgages are suitable for:
- Business owners looking to secure premises for their business (owner-occupiers)
- Property investors looking to expand their commercial portfolio and rent to retail tenants
Why choose a commercial mortgage for your retail premises?
Securing a commercial mortgage for retail properties offers several benefits:
- Secure your long-term premises – Owning your own retail space gives you stability in high-demand areas
- More control over your property – You can renovate or sublet the property without restrictions (although you should always discuss these plans with your lender first)
- Flexible repayment terms – Commercial mortgages offer a tailored approach to suit your needs
How do commercial mortgages for retail premises work?
You can expect:
- Loan terms – Usually between 5 and 25 years, depending on the lender
- Deposit – Most lenders require 25-40% of the property value
- Interest rates – Fixed or variable options are available
- Repayment – most commercial lenders offer capital and interest repayment and interest-only mortgage options
Who can apply?
Commercial mortgages are available to:
- Sole traders
- Partnerships
- Limited Companies
- LLPs
Lenders assess both the business and the individual(s) behind it, especially for small businesses or startups.
Types of retail premises we can finance
We can help you arrange finance on a number of different retail premises, including (but not restricted to):
- High street shops
- Independent shops
- Retail units in shopping centres
- Supermarkets
- Mixed-use properties (with flats above shops)
- Franchises and branded outlets
What is the application process?
Initial Enquiry
You’ll discuss your goals with one of our expert brokers, whether this be purchasing or refinancing a commercial retail premises. Our team will assess your financial position and mortgage requirements to place you with a lender that best suits your circumstances.
Documentation & Lender Assessment
You’ll need to submit several documents (keep scrolling for our full list of documentation) to your lender. To help you at this stage, our brokers will go through exactly what needs to be submitted as part of the formal mortgage application. We review everything first to ensure it’s all well-presented before submission.
Your lender will review your application to assess your affordability and the risk of the case. This includes assessing your and the business’ (if applicable) financial stability, your credit history, and the viability of the property as an investment.
Valuation & Offer
The lender will arrange for a valuation of the property. This step is crucial, as the valuation will impact your loan-to-value (LTV) and how much you can borrow. Once the lender is satisfied, you’ll be issued a formal mortgage offer outlining the rate and the full loan amount.
Legal Process & Completion
Once you accept the offer, the solicitors will handle the legal side of the transaction. Once this is completed, the funds are released and the mortgage is finalised, meaning you have full ownership of the retail premises.
What fees can I expect?
When applying for a commercial mortgage, it’s important to budget for the associated fees, including:
- Lender arrangement fee: typically 1-3% of the loan amount
- Valuation fees: typically, your lender will provide you with 3 different quotes. As a general rule, the higher the property value, the higher the valuation costs
- Legal fees: these will vary depending on the complexity of the case and the loan size
- Broker fees
A summary of our charges can be found here.
Frequently asked questions…
How are commercial mortgage rates set?
How long does the process take?
What documents do I need to apply?
What our clients say…
We could go on all day about what makes us great, but our client's reviews speak for themselves
Why choose MFB for your commercial mortgage?
- With over 35 years’ experience, we’re the experts in commercial finance
- Our team are all bank-trained in this sector, giving us the expertise we need to find the best solution for you
- Our longstanding relationships with leading commercial mortgage lenders mean we’ll find you the best deal on the market
- Our team are all experts in their field and understand the market’s complexities
Meet your mortgage makers.
Talk to a commercial mortgage broker
We handle all types of commercial mortgages, from commercial investment and owner-occupier to semi-commercial. Our expert commercial mortgage brokers are eager to help with your future aspirations. Just get in touch through our channels.
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