Commercial Loans

Funding solutions for business premises, investment property and mixed-use buildings

Commercial property finance can help businesses, landlords and investors purchase, refinance, release capital from, or develop property used for business or investment purposes.

At Henden Financial, we help clients understand the options available, compare suitable lenders, and structure borrowing around their property, business position and long-term plans.

Commercial borrowing can be more complex than a standard residential mortgage. Lenders will usually consider the property type, income, trading history, rental potential, deposit level, security, affordability and the intended repayment strategy before making a decision.

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Commercial Loan FAQ

What can commercial property finance be used for?

Commercial finance may be suitable for:

buying business premises;
refinancing an existing commercial mortgage;
purchasing an investment property;
buying a mixed-use or semi-commercial property;
funding offices, shops, warehouses, industrial units or hospitality premises;
releasing equity from a commercial property;
purchasing property through a limited company;
restructuring existing property finance;
supporting expansion, relocation or business growth;
funding refurbishment or conversion works where suitable.

The right solution will depend on the property, the applicant, the purpose of the borrowing and the lender’s criteria.

What are the different types of commercial property borrowing?

Owner-occupied commercial mortgages

An owner-occupied commercial mortgage may be used where a business wants to buy or refinance premises it trades from. This could include offices, shops, workshops, warehouses, clinics, salons, restaurants or other trading premises.

The lender will usually assess both the property and the strength of the business. This may include reviewing trading accounts, bank statements, management information, business performance and future affordability.

Commercial investment mortgages

A commercial investment mortgage may be suitable where the property is let to another business or tenant. The lender will usually look at the rental income, lease terms, tenant quality, property valuation and the borrower’s experience.

This type of finance may be used for offices, retail units, industrial units, warehouses or other commercial investment property.

Semi-commercial and mixed-use property finance

Semi-commercial property finance may apply where a building has both commercial and residential elements. A common example is a shop with a flat above it.

These cases can be more specialist because the lender needs to understand the split between commercial and residential use, the rental income, the legal title, planning position and whether any part of the transaction falls within regulated mortgage rules.

Commercial residential borrowing

Some property borrowing sits between residential and commercial finance. This may include certain buy-to-let portfolios, houses in multiple occupation, multi-unit freehold blocks, serviced accommodation, limited company borrowing or residential investment property.

The lender route will depend on the property use, ownership structure, borrower profile and whether the borrowing is for personal, investment or commercial purposes.

How do lenders assess commercial mortgage applications?

Commercial lenders may consider:

the property type and location;
the valuation and condition of the property;
the loan-to-value required;
the applicant’s experience;
the business accounts or rental income;
affordability and debt service cover;
lease terms and tenant strength for investment cases;
deposit source;
credit history;
business bank statements;
repayment method;
future plans for the property;
whether additional security or personal guarantees are required.

Because commercial finance is often individually assessed, two lenders may look at the same case very differently.

How much deposit is usually needed?

Deposit requirements vary depending on the lender, property type, borrower strength and overall risk.

Commercial mortgages usually require a larger deposit than a standard residential mortgage. A stronger deposit, good trading history, reliable rental income and a clear repayment strategy can improve the range of options available.

We will help you understand what may be realistic before submitting an application.

What are the interest rates and fees?

Commercial mortgage pricing is usually based on the overall risk of the case. Factors may include the loan size, loan-to-value, property type, business strength, rental income, credit profile and repayment term.

Costs may include:

lender arrangement fees;
valuation fees;
legal fees;
broker fees;
security or debenture fees where applicable;
early repayment charges;
product fees;
monitoring fees on more complex cases.

We will explain the costs clearly so you can understand the overall finance package, not just the headline interest rate.

Why Choose Us?

There are many considerations when choosing someone to help you with your first mortgage. Getting it right could save you thousands. During our initial consultation we will go through the process together and assess your suitability. We offer a comprehensive range of products from across the market, which means we aren't limited to a smaller selection of products and can choose from thousands of available lenders.

20 Years Experience

Our wealth of experience across the industry means our knowledgeable advisors can provide a high level service.

No Offer, No Fee

We are so confident that we will find you the right mortgage, that we only ever charge when you receive a full mortgage offer. For most people this takes them forward to a successful house purchase.

Comprehensive Market Access

You won't be missing out on any great deals. We can access all of the mortgage products which are currently available and know how to find you the most suitable deal.