Auction-Finance logo
Call us anytime

Secure the Perfect Commercial Mortgage for Your Business Goals

Struggling to secure the right funding to grow your business? At Auction Finance, we offer tailored commercial mortgages starting from £25,000, backed by your business premises. Whether you’re buying property, investing in development, or upgrading your facilities, our flexible mortgage solutions are designed to help you achieve your business goals.

What Is a Commercial Mortgage and How Does It Work?

  • A commercial mortgage is a loan secured against a business property, giving business owners the financial leverage to purchase land or premises for commercial use. Unlike a residential mortgage, this type of loan is designed specifically for those looking to invest in or expand their business.
  • Whether you're buying office space, a warehouse, or retail premises, the structure of a commercial mortgage is similar to that of a residential one – you'll receive the funds upfront and make repayments over time. However, this loan helps you grow your business, not your property portfolio.
  • With the right mortgage, you can secure the perfect space for your business to thrive, all while managing repayments that suit your financial plan.

Understanding the Fees Associated with a Business Property Mortgage

  • When securing a business property mortgage, it's essential to be aware of the various fees that may apply. These fees can add to the overall cost of your mortgage and vary depending on the lender and your specific situation. Common fees include arrangement fees, which typically range from 1% to 2% of the loan amount for loans up to £1 million and may be added to your loan after approval.
  • Additionally, valuation fees start around £500 and cover the cost of a professional valuation report required by the lender. Legal fees are another consideration, as you'll need to pay both your legal costs and those of the lender, typically starting at around £500 each. Finally, if you work with a broker to help navigate the process, expect to pay broker fees of up to 1% of the loan value for their tailored advice and service.

Key Features and Benefits of Our Commercial Mortgages

Our commercial mortgages offer unmatched flexibility, giving your business room to grow on your terms.
Flexible repayment terms

Borrow with repayment periods ranging from 1 to 25 years, tailored to your business needs.

Interest-only options

Enjoy a capital repayment holiday with the option for an interest-only period, subject to status.

Variable or fixed-rate mortgages

Choose between a variable or fixed-rate mortgage, offering the flexibility to suit your strategy.

Switch between rates

Easily transition from a variable rate to a fixed-rate mortgage when the time is right.

Secure long-term fixed rates

Lock in a fixed interest rate for up to 10 years, providing stability and predictable costs.

Customised mortgage terms

Enjoy tailored mortgage solutions designed to match your business's financial goals and growth plans.

How to Apply for a Commercial Mortgage?

To apply for a commercial mortgage with Auction Finance, you'll need to provide key financial documents to determine your eligibility. We require three years' audited or certified accounts, along with current management figures if available. Additionally, you'll need to submit two months of bank statements and an assets and liabilities statement. Once we have all the necessary details, we can guide you through the next steps of securing the right mortgage for your business.

  • Three years of audited accounts
  • Two months of bank statements
  • Assets and liabilities statement

Terms and Fees

  • Loans over £25,000
  • Fixed-rate terms from 1 to 10 years
  • Prepayment fees may apply
  • Lending fees and associated costs added to loan
  • Breakage costs for early fixed-rate cancellation
  • Property may be repossessed for missed payments

Types of Commercial Mortgages to Suit Your Business Needs

At Auction Finance, we offer two main types of commercial mortgages, tailored to help you achieve your specific business goals. Whether you're looking to purchase premises for your own use or invest in rental properties, we’ve got you covered.

Owner-occupier mortgages

Ideal for buying property to use as your business’s trading premises.

Commercial investment mortgages

Perfect for purchasing property you plan to let out for rental income.

Find out more

Why Choose Auction Finance for Your Commercial Mortgage?

Choosing the right commercial mortgage is crucial for your business’s success, and at Auction Finance, we understand the complexities involved. With our expertise and tailored approach, we’re here to guide you through the process, ensuring you make an informed decision that aligns with your financial goals.

Flexible options for all credit ratings

Even with a bad credit rating, you can still apply for a commercial mortgage, and we’ll help you find the best possible terms.

Secured loans with peace of mind

Our commercial mortgages are secured against your property, providing lenders with collateral while you benefit from competitive rates.

Affordability assessments for your comfort

We’ll work with you to ensure you can comfortably manage both the deposit and monthly repayments, avoiding unexpected financial strain.

Maximise your loan to value ratio

Our expert brokers will help you secure the highest loan to value (LTV) ratio possible, giving you more capital to invest in your business.