It could also be a property of mixed use, for example, a flat above a shop, however this will depend on the square footage of each part of the property
In the normal scheme of things, there are the same variations available with commercial mortgages as there are with residential, fixed rate, interest only, variable, and other mortgages.
However there are many features that are unique to commercial mortgages compared with their residential counterparts.
Commercial mortgages could be useful to anyone who owns a business which requires premises, including start-ups, small to medium enterprises and large businesses.
This guide will explain what a commercial mortgage is, the information required by lenders, pros and cons of this type of loan and the regulatory requirements for recommending such deals.
Supporting material from Rob Lankey, managing director of commercial mortgages at Aldermore Bank; Steve Olejnik, sales director of Sevenoaks-based intermediary Mortgages for Business; Craig Pollock, senior manager property for Bank of Scotland Commercial; and Adam Tyler, chief executive of the National Association of Commercial Finance Brokers (NACFB).