A commercial mortgage has the same characteristics as any other mortgage in that property is offered via a legal charge as security for repayments.

Commercial mortgage loans are offered to both owner occupiers and investors who require funding for any property that is solely for business use. Examples of qualifying property include offices, warehouses and industrial units.

As with all mortgages, special deals are available from time to time, depending on market conditions. However as commercial premises and business applicants are deemed to have a higher risk profile than private residential mortgages, costs are usually higher. In some cases, commercial mortgage lenders may require additional comfort in the form of personal or directors guarantees.

Commercial mortgages are available for both freehold and leasehold properties. However leasehold properties should have a minimum of 40 to 50 years of unexpired lease left once the mortgage has been repaid.