Commercial Mortgage Broker In Bristol

• Market-leading commercial mortgage rates 
• Up to 80% Loan To Value (100% with additional security)
• From £50,000 to £25 Million
• Terms  from 3 months
• Interest roll-up options
• Same-day agreement in principle
• We can accept applications from individuals, limited companies, SPV's and offshore structures
• Finance for residential, commercial including retail outlets, restaurants, cafes, guest houses and B&Bs, offices, warehouses, industrial units, factories, HMOs, nursing and care homes, investment properties, development land and buy-to-let property (portfolios and limited companies welcome)
• We can discuss your financial needs via telephone or email, or we can arrange face-to-face meetings at your convenience. 

We pride ourselves on providing excellent service that is responsive to your needs.

Call us on 0117 959 5094 to discuss your requirements or book a free consultation below.

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What is a Commercial Mortgage Broker?

If you’re a business owner or investor, a commercial mortgage broker is a financial specialist that can help you secure a loan for commercial property. These properties usually include office buildings, retail spaces, industrial facilities, and other properties used for commercial purposes.

A mortgage broker acts as an intermediary between the borrower and a bank or private lender. They assess your business’s needs and overall financial circumstances to source and negotiate the best finance product available to you.

Commercial mortgage brokers have extensive knowledge of the lending market, different loan products, and the specific requirements for commercial financing. They simplify the loan process, helping clients compare offers, navigate complex terms, and ultimately secure financing with favourable terms.

What Are Commercial Mortgages Used For?

Commercial mortgages are used to facilitate the purchase, development, or refinancing of properties intended for business. These mortgages can apply to a wide range of property types, each serving different commercial needs.

Common uses include:

• Purchasing Commercial Property: Businesses may use commercial mortgages to buy property to operate out of - such as office buildings, retail stores, warehouses, or industrial facilities.
• Developing New Projects: Developers may use commercial mortgages to fund the construction of new commercial buildings. Shopping centres, apartment complexes, or office parks, for example.
• Expanding Existing Property: You can use commercial mortgages to finance the expansion or renovation of existing properties, improving facilities or adding additional space.
• Refinancing Existing Debt: Commercial mortgages can be used to refinance existing loans on commercial properties, often to secure better interest rates, reduce monthly payments, or access equity for other investments.
• Acquiring Investment Property: Investors may also be able to use commercial mortgages to purchase apartment buildings, hotels, or retail centres with the goal of earning rental income or capital appreciation.

Commercial Mortgage Case Studies

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How Long Does It Take to Get a Commercial Mortgage?

On average, the process typically takes between 6 to 8 weeks.

However, several factors can influence the timeline, including:

• Complexity of the Application

• Lender's Process

• Due Diligence and Documentation

• Approval and Underwriting

Commercial Mortgage Criteria

Eligibility criteria for a commercial mortgage typically include:

Credit History

Both your personal and business credit scores may be assessed. A strong credit history increases your chances of approval and can secure better terms.

Deposit

Lenders usually require a larger deposit for commercial mortgages than for residential purchases, so be prepared to provide between 20% to 30% of the property value.

Business Finances

You’ll need to provide detailed financial statements, including profit and loss statements, balance sheets, and cash flow statements, to demonstrate the financial health of your business.

Income and Revenue

Lenders will review your business’s income and revenue to ensure you have the capacity to repay the loan. Consistent and sufficient income is crucial.

Property Valuation

The property must be appraised to determine its value and ensure it meets the lender’s criteria. The property’s income potential, if applicable, will also be evaluated.

Business Plan

A solid business plan outlining your business model, strategy, and projected financial performance can strengthen your application.

Experience and Management

Lenders may assess the experience and management capabilities of the business owners or operators to gauge the likelihood of successful property management and business operations.

Collateral

The property being financed usually serves as collateral. In some cases, additional personal or business assets might be required as security.

Meeting these criteria helps demonstrate your ability to manage the mortgage and the property effectively, increasing your chances of securing a commercial loan.

Are Commercial Mortgages Expensive?

Commercial mortgages are generally more costly than residential mortgages. They typically have higher interest rates because lenders view commercial properties as higher-risk investments. This is primarily because they’re tied to business profitability or property income as opposed to employed income.

Additionally, commercial loans often have shorter terms, ranging from 5 to 20 years, which means that the monthly payments are higher. You'll also need to provide a larger deposit, which pushes up the upfront costs significantly.

Because commercial mortgage affordability is tied to a business instead of a specific individual, there are usually more moving parts than a standard residential mortgage. The application will typically be more complex, leading to higher fees and elevated interest rates to offset risk.

Commercial Mortgage Calculator

For a better initial understanding of what you'll pay for a commercial mortgage, use our commercial mortgage calculator.

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Is a Commercial Mortgage Tax Deductible?

Yes, interest on a commercial mortgage is generally tax deductible, so you can reduce your taxable income by deducting interest paid on the loan. However, principal repayments are not tax deductible.

Additionally, the property financed must be used for business purposes to qualify for this deduction. If the property has any personal uses, you may need to allocate the deductible portion accordingly.

It’s worth consulting with a tax professional or accountant to ensure you are complying with the appropriate regulations.

Can a Sole Trader Get a Commercial Mortgage?

Yes, you could be eligible for a commercial mortgage if you’re a sole trader. There are a few more obstacles that sole traders may face compared to other business structures, but it’s still a viable option.

Lenders can view sole traders as higher risk because your business isn’t legally separate from yourself as an individual. Your personal and business finances will be closely linked, making your income stability and credit history crucial factors in the application process.

To improve your chances of approval, you’ll need to provide detailed financial records, including your income, business accounts, and tax returns. A strong business plan and proof of consistent income will also be important. Additionally, you may need to offer a significant deposit or provide personal guarantees to secure the loan.

While it’s possible for a sole trader to obtain a commercial mortgage, the process can be more stringent, and interest rates or terms may be less favourable compared to limited companies or larger businesses.

Can You Get an Interest-Only Mortgage on a Commercial Property?

Yes, it is possible to get an interest-only mortgage on a commercial property. With an interest-only mortgage, you pay only the interest for a specified period, typically between 1-5 years, after which you begin paying both principal and interest.

This can lower your initial monthly payments and improve cash flow, but it also means that you won't reduce the loan balance during the interest-only period.

The main advantages of interest-only commercial mortgages are that paying interest-only means comparatively monthly payments, freeing up capital for other business needs and allowing a bit more flexibility than a standard commercial mortgage. The interest payments are typically tax-deductible, which can help reduce your overall tax liability. However, it's important to weigh this up against the risks of repossession if you do fail to keep up with your payments.

Why Use a Commercial Mortgage Broker?

Using a broker for a commercial mortgage is worthwhile because they bring expertise and can streamline the process significantly. At Clifton Private Finance, we have in-depth knowledge of the commercial lending market and access to a broad network of lenders, which increases your chances of finding the best mortgage terms and rates suited to your specific needs.

We can handle much of the legwork involved in the application process, from gathering and organising documentation to negotiating terms, saving you time and reducing stress.

Our dedicated team can also provide valuable guidance on complex aspects of commercial mortgages, such as underwriting requirements and loan structures, ensuring you make informed decisions.

We have relationships with lenders across the market and can get you access to the best rates available for your circumstances. We are a whole-of-market brokerage, working on your behalf to ensure you get the most suitable deal possible with enhanced client care.