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Understanding commercial buy to let mortgages

Find out more about buy to let mortgages for limited companies

What is a commercial buy to let mortgage?

Commercial buy to let mortgages are a type of secured loan, where commercial real estate is the security. They are an ideal loan facility for limited companies that wish to invest in commercial property, with an aim to let to a third party as offices, retail, industrial or even healthcare spaces.

How does commercial buy to let differ from a homebuyer buy to let mortgage?

They are for individuals who own 10 properties or less, invest in residential property only, and operate without registering as a business entity.

You can borrow from £25,001 with no upper limit on a variable interest rate, or up to £10m on a fixed interest rate.

They are for registered limited companies that wish to invest in non-residential property to be let to a third party or parties, as premises to trade from.

The minimum deposit is 25% of the value, but it can be adjusted to be tailored to your business requirements.

How does a buy to let commercial mortgage work?

  1. 01

    Enquire online or speak to your Relationship Manager. We'll discuss your requirements and explain the options available to you.

  2. 02

    We'll provide you with a quotation and will collect any further details required to submit your application. Our credit team will then review it.

  3. 03

    We'll be in touch to discuss the outcome, agree the terms and the next steps. 

  4. 04

    Once all the documents are finalised and returned, and any further conditions satisfied, we'll confirm that the funds have been paid to your account.

Advantages of commercial buy to let mortgages

A business buy to let mortgage is a simple and efficient solution that could help expand your commercial real estate portfolio.

Longer loan terms when compared to other loans

The repayment terms on our commercial mortgage can be set to a term of 25 years, which makes it a great solution for big real estate facilities, especially when compared with Real Estate Finance loan terms which range from three months to five years.

 

 

Interest rate flexibility and repayment holidays

Buy to let commercial mortgages, just like any commercial loan, are meticulously tailored to each business case, ensuring the terms meet your needs. Our commercial mortgage product offers flexible repayment profiles, a choice between variable and fixed interest, and even repayment holidays.

Get in touch about a buy to let commercial property

Our Commercial Mortgage product can be used to buy commercial property with the aim of letting it as business premises. Simply enquire online and we’ll be in touch to talk through possible solutions tailored to your business and property.

Additional support for your business

Thinking about Business premises?

There are several factors to consider before you decide on your business premises. We could help with the decisions and suggest ways you could finance it.

Understand commercial re-mortgaging

Commercial re-mortgaging is a refinancing method for mortgages secured against commercial real estate. Find out more about commercial re-mortgaging with us.

NatWest Commercial Mortgage

Owning your own premises could be a great way of growing your business without the constraints of renting. Find out more about commercial mortgages.

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