Commercial Mortgage Calculator

How We Work

1. Get a Customised Quote

Our commercial finance brokers will get an understanding of your business and your requirements, look at your financial forecasts and accounts, and provide a sense-check on what product(s) will best fit your needs, as well as hzow much you could borrow, and what the costs and terms could look like.

2. Compare Options

When you’re happy with the proposed solution, we’ll go away and compare options across the market. We’ll often present a range of choices ranging from lowest cost to most flexible, and we’ll talk you through the pros and cons of each if it’s a close decision.

3. Submit Your Application

If you’re happy with the terms we can source, we’ll handle the paperwork and submit your application for you. We’ll handle any issues and questions that may arise from the lender, and we’ll keep chasing your application to ensure funds are released as quickly as possible.

4. Receive Funds

You receive your finance– success! We’ll always be here for any ongoing questions or support you require during your loan term.

Contents

How To Use The Calculator

First, enter your loan amount. This isn't the value of the property you're buying, but just the loan you need to make your purchase.

Next, enter your mortgage term.

The default term is 25 years and this is the industry standard, but there is flexibility on this depending on the property you're buying and your plans for it. Extending the mortgage term reduces your monthly payments, but it means you're repaying your loan for longer and will ultimately pay more in interest throughout the course of your mortgage.

Next, enter your interest rate.

Commercial mortgage rates are typically between 7-12%, depending on the complexity of your project, your financial details and the broader economy at the time.

To get a better understanding of what your interest rate will be, we recommend:

Speaking to our advisers about your goals to compare the market and get an estimate
Reading our full guide to commercial mortgage rates to understand what else affects the costs

Or to get a rough idea of costs, we recommend entering 7-8% for simple commercial mortgages with a good credit history and a low loan-to-value (70% and under).

For more complex projects with unusual property locations, poor credit history, low or patchy income history or other complications, you should expect to get a higher rate. In these cases, we recommend getting in touch to speak to an adviser for a better understanding.

Finally, press calculate to get your results.

Loan Amount (£):

Over how many years?

Interest rate (%)

Your repayments

Based on the figures entered, we think your second mortgage will cost:

Repayment: (Capital & Interest)

Interest Only:

Get quote

Speak with us

This information is computer-generated. It has only been designed to give a useful general indication of costs. Make sure that you read the separate key facts lender illustration before you make a decision. To get a full mortgage quote contact us.

The results

Our commercial mortgage calculator calculates your monthly mortgage repayments based on the figures entered.

This is split into two sections:

Capital and interest
Interest only

The capital and interest figure is the total amount you'd repay each month for your commercial mortgage. Capital is the actual money you've borrowed, and interest is the bank's charge for loaning you the money.

The interest-only figure is purely the interest - so, you can see exactly how much your commercial mortgage will cost you each month in interest.

By tweaking the loan size, interest rate and mortgage term, you can see how these factors affect your commercial mortgage costs, and hopefully, this informs your planning proces,s project goals.

To speak to a qualified and experienced commercial mortgage adviser, book a free consultation below and see how we can help you.

We can give you a sense-check on your commercial mortgage plans, support you with your application process, and compare lenders and rates across the market to find you the best deal for your project.

Commercial Mortgage Service

Why Use Clifton Private Finance for Commercial Property Finance

As a mortgage broker, we specialise in arranging commercial property finance for business owners and individuals who require commercial finance.

Whether you need finance for a commercial property, standard buy-to-let, a House in Multiple Occupation or a mixed-use property, we have the expertise and knowledge of the financial services market to identify the most suitable funding for you.

We regularly work with private banks, specialist lenders, family offices and wealth managers who are willing to provide commercial mortgages to a range of applicants with a variety of circumstances.

Get in touch today for a no-obligation consultation with an adviser.

Book Consultation

Frequently asked questions

You can find the most common questions asked about commercial finance below. If you have a question that isn't answered here, please email us at commercial@cliftonpf.co.uk

What is commercial finance?

Commercial finance is a type of financing exclusively for use by businesses, but there's a huge variety of uses. Commercial finance refers to property, vehicles, assets, and even funding for the upfront costs of businesses. It's a great source of financing for smaller businesses looking to develop and grow.

What do commercial brokers do?

Commercial brokers are essential mediators between clients and lenders, they will consult with business owners, analyse their financial records, and reach out to lenders to acquire a loan with the best possible interest rate. Commercial brokers will liaise on several loan types, from properties to vehicles, and more.

Who is eligible for commercial finance?

When applying for commercial finance, your eligibility for certain loans will depend entirely on a few factors: creditworthiness, financial history, and business performance. It's important for a lender's comfort that you have the financial solidity to pay your commercial loan and a history of paying your debts to demonstrate that the loan will be paid on time.

Suppose your creditworthiness or overall business health suggests you cannot acquire the desired commercial financing. In that case, you'll likely face much larger interest rates to reduce lender comfort or even complete denial.

Why would a business need commercial finance?

Commercial finance is an effective way of securing capital, without reducing a business's cash flow. It's primarily focused on specific commercial needs, such as stock, new equipment, or real estate. Unlike the broader term, 'business finance', commercial finance is tied specifically to growth, expenses and acquisition.

What types of commercial finance are available?

When it comes to financing solutions, commercial finance offers an array of products for business owners to choose from, here are some of the primary choices:

Term Loan:

A term loan is a type of loan where a company receives a lump sum to repay over a set term. For example, a company borrows £100,000 to repay monthly for a fixed period of five years. This commercial finance product is useful for smaller businesses that require funding for operational costs, including employee payment and stock inventory.

Asset-based Lending:

Asset-based lending is a loan that is secured against an asset from a business, known as collateral. Should you fail to repay your loan, the lender can then seize the asset to repay the debt accrued. Whilst repaying a loan, the asset linked to the loan itself is still owned by the business, but if you decide to sell the linked asset, you must repay the loan in full.

Invoice financing:

For countless industries, an invoice for a product or service can have delays of up to 90 days, leaving your business short on cash flow which could otherwise be spent on upfront costs and even growth. Invoice finance is a specialised loan for businesses with significant unpaid invoices (accounts receivable) which are then used as collateral by lenders. The lender assumes the debt of the business and therefore will collect the accrued invoices to pay the debt owed, relieving the pressure from the business owner.

Trade finance:

Trade financing is a product which is designed to facilitate international trading, providing capital for upfront international trading costs.

Equipment leasing:

If your business is reliant on equipment to run, be it a computer or a crane, equipment leasing is a cost-effective way of acquiring technology that you might need for the operation of your business. Over time, the business owner completes monthly repayments of the equipment during a specified term, but what happens after the payment period is dependent on your contract terms.

Lenders can offer a lump sum or balloon payment for the business owner to purchase the equipment, allowing the business to fully own it. Those who only need equipment temporarily, however, can stick to the monthly payments and return the equipment after the lease has ended.

Commercial Mortgage Calculator

Use our commercial mortgage quote form to get an estimate of:

How much do you want to borrow?