Commercial Investment Property

A commercial investment mortgage is effectively a buy to let mortgage for commercial property.

If your property investment strategy includes commercial property or semi-commercial (mexed use) property then a commercial investment mortgage will allow you to incest in these properties using a mortgage to extend your affordability.

What sort of property can a Commercial Investment Mortgage be used for?

Almost any commercial property or semi-commercial property can be mortgaged, but some specialist properties are more difficult and so might be at a lower loan to value (LTV) or mean a higher interest rate. This is very much dependent on the strength of “covenant” (the length of the lease and the quality of the tenant) so, a strong covenant on a specialist property might be preferable to a weak covenant on a more general property.

If you’re unsure please discuss with a member of our commercial mortgage team.

General property

  • Retail with or without accommodation
  • Offices
  • Light industrial
  • Warehousing

Specialist property

  • Licensed property
  • Care homes
  • Land and agricultural
  • Heavy industrial

Commercial investment mortgage

Commercial Investment Mortgage Frequently Asked Questions

What is a commercial investment mortgage?

Similar to a buy to let mortgage a commercial investment mortgage is one used to purchase or refinance property which is let to tenants, the difference being the property is commercial or semi-commercial (mixed use).

How much LTV (loan to value) will a commercial investment mortgage go to?

Tha maximum loan to value for a commercial investment mortgage is 80% currently (October 2021) but 80% LTV is exceptional for the highest quality cases, in most cases the maximum is 75% which is available for the typical client.

Can you get a 25 year commercial investment mortgage?

Yes – most providers allow for a 25 year term, some will even extend to a 30 year term. Most providers will allow either an interest only payment strategy or capital and interest or a hybrid part-and-part.