A commercial mortgage for your premises

Which premises suit your business plans?

Describe why you want to buy or renovate. Do you need more space, want to work from a different location or review existing financing? A commercial mortgage is finance secured against commercial property. The intended use, ownership arrangements and the business behind the application are important topics to discuss.

Business owner occupation, partial letting and combined residential and business use require a focused assessment. Explain how the premises will actually be used. A location suitable for your activities is not automatically a property for which every lender offers the same terms.

The investment amount and your own funds

Include more than the purchase price in your budget. Consider valuation, notary, fit-out and any building work costs. Show which funds you intend to contribute and what must remain available as working capital. This helps prevent the property purchase from putting unnecessary pressure on day-to-day business operations.

For a specific proposal, ask which costs are payable immediately, which amounts are financed and what reserve you need. There is no fixed financing percentage or standard amount applying to every business and property.

Cash flow and repayment

Compare the business's expected income and spending with financing payments. Also consider a scenario with lower turnover, unexpected maintenance or a delay in your plans. Profit on paper and having enough cash when a payment falls due are different things. Your accountant can help assess the financial plan and its assumptions.

Consider both the repayment schedule and the loan's maturity date. An amount may remain due on that date that you must repay from your own funds or refinance. Do not treat future refinancing as a certainty in your plan.

Capacity to pay interest, repayments and property costs.
The money that must remain available for running your business.
The outstanding debt at maturity.
The effect of lower income or additional spending.

Understand security and terms

The property provides security for the lender. If commitments are not met, the property may be at risk. Also review any additional security, personal obligations and agreements with multiple lenders. Have their implications explained before signing.

Conditions for making changes, early repayment and use of the property can affect your flexibility. Compare the full agreement, rather than only the interest rate. Discuss legal and tax questions about ownership, business structure or use of the premises with the appropriate specialist.

Discuss your commercial mortgage with RFD

Start with the outline of your business, the premises and your investment plan. RFD discusses your financing needs and the appropriate next step. The work to be performed, the party performing it and the arrangements must be clear in advance. Any application then requires assessment by the lender concerned.

Book an appointment or contact us directly. An initial enquiry does not require full annual accounts or identity documents in a general message. Agree which information is needed and a secure way to submit it. This explanation is general and contains no promise of finance or personal tax advice.

Frequently asked questions

Is a commercial mortgage the same as a mortgage on my home?

No. Its purpose is commercial property, and the application is considered in the context of the premises and the business. Owner-occupied mortgage terms cannot simply be applied.

Can I discuss the purchase and renovations together?

Yes. Include both elements and their timetable in your investment plan. Whether and how they can be financed depends on the lender's assessment and terms.

Must the loan be fully repaid at maturity?

That depends on the agreed term and repayment schedule. Ask explicitly whether an amount will remain due and how you intend to repay it. New finance at maturity is not guaranteed.

What is useful for a first meeting?

The outline of your business, the use of the premises, the investment, available funds and existing finance. We agree which further information is needed and how to submit it.

This is general information and does not constitute personal financial advice or a binding finance offer. What is suitable and possible depends on your circumstances and the lender's terms. Read the disclaimer.