The deposit needed for a commercial mortgage can often vary between properties and businesses.When purchasing business premises, it will leave you with stability in knowing that you won’ be subject to any sudden rent increases should the economy tighten.
And, if your commercial property increases in value, so will your business capital and, even though you will probably be paying a similar amount on your mortgage as you would do on rent, your business will obviously own the property after paying the mortgage off.
LTV amounts required often depend on the type of business. For example, hotels, Houses of Multiple Occupancy (HMO) and nursing homes are usually around 70%, whilst land and self-build properties are around the 55% mark.
However, these are only rough guides and they can often fluctuate as different lenders will have different criteria dependent on your business’s position.
If you’re considering getting a commercial mortgage, contact one of our commercial mortgage advisers who will be able to help you with the process and look for the rates that are most suited to your circumstance.