| Mortgage Amount Required Mortgage Amount Required - This is the net amount that you wish to borrow. | £ 0 | |
| Lender Arrangement Fee (2%) Lender Arrangement Fee - This is calculated as a percentage of the Mortgage Amount Required and added to the facility. | £ 0 | |
| Broker Fee Broker Fee - We do not charge broker fees on Commercial Mortgages. | Nil | |
| Gross Mortgage Amount Gross Mortgage Amount - This is the Total amount being borrowed which includes the Mortgage Amount Required and the Lender’s Arrangement Fee. | £ 0 | |
| Interest Rate Interest Rate - The interest rate shown is an annual rate, so is the amount of interest being charged by the lender per year. | 7% | |
| Loan to Value (LTV) Loan to Value (LTV) - LTV is the amount of equity being used by the loan facility. Commercial mortgages are usually available up to 75% LTV. The loan to value is calculated as a percentage of the gross mortgage facility to the value of the security being offered. | nan% | |
| Lender Legal Fees (approximate)Lender Legal Fees - The lenders will incur fees when putting a commercial mortgage or re-mortgage in place and these fees are passed onto the borrower. Our calculator provides an approximate guide to how much these fees may be. | £ 1,250 | |
| Mortgage Term (in years) Mortgage Term - How long the mortgage facility is spread over, in years. | years | |
| Interest Only Monthly Payment Interest Only Monthly Payment - This is the monthly payment amount if you opt for an interest only mortgage. | £ 0 | |
| Monthly Repayment Monthly Repayment - This is the monthly repayment amount if you opt for a repayment mortgage. | £ 0 | |
| Total Amount Repayable (if loan runs full term) Total Amount Repayable - This is the total amount that you will repay on a repayment mortgage basis assuming that there is no change in interest rates, the facility runs full term and all repayments are made on time. | £ 0 |
| Term | Interest | Capital | Balance |
|---|---|---|---|
| Month 1 | £ 0 | £ 0 | £ 0 |
| Month 2 | £ 0 | £ 0 | £ 0 |
| Month 3 | £ 0 | £ 0 | £ 0 |
| Month 4 | £ 0 | £ 0 | £ 0 |
| Month 5 | £ 0 | £ 0 | £ 0 |
| Month 6 | £ 0 | £ 0 | £ 0 |
| Month 7 | £ 0 | £ 0 | £ 0 |
| Month 8 | £ 0 | £ 0 | £ 0 |
| Month 9 | £ 0 | £ 0 | £ 0 |
| Month 10 | £ 0 | £ 0 | £ 0 |
| Month 11 | £ 0 | £ 0 | £ 0 |
| Month 12 | £ 0 | £ 0 | £ 0 |
To help you work out your budgets and cash flow, or to simply compare available commercial mortgage deals, to see what difference a commercial mortgage may make to your business, we have created this simple commercial mortgage calculator.
Our commercial mortgage calculator will provide figures for both interest only and repayment mortgages. It has been created to provide you with an approximate guide to the costs of a commercial mortgage.
However, as independent brokers we find our customers the facilities that offer them the best possible deal.
Please use our commercial mortgage calculator as often as you like to help you decide what commercial mortgage option would be the best for your business.
As independent commercial mortgage brokers we search the whole market to find our clients the best possible deals for the finance that they require.
There are literally hundreds of different commercial mortgage plans available, allowing us to:
Commercial mortgage rates start from just 7.25% pa - (2% over Bank of England Base Rate)
| Loan Amount | Security Type | Max LTV | Interest Rate | Lender Facility Fee |
|---|---|---|---|---|
| Fixed | ||||
| £250,000 upwards | Commercial | 65% | 7.79% Fixed for 5 Years | 2% |
| £250,000 upwards | Commercial | 70% | 7.89% Fixed for 5 Years | 2% |
| £250,000 upwards | Commercial | 75% | 7.99% Fixed for 5 Years | 2% |
| £250,000 upwards | Semi-Commercial | 60% | 6.35% Fixed for 5 Years | 2% |
| £250,000 upwards | Semi-Commercial | 75% | 6.89% Fixed for 5 Years | 2.5% |
| £250,000 upwards | Semi-Commercial | 75% | 6.69% Fixed for 5 Years | 3.5% |
| £250,000 upwards | Semi-Commercial | 75% | 6.49% Fixed for 5 Years | 4.5% |
| Variable | ||||
| £2 million and above | Commercial | 65% | 7.19% Variable | 2% |
| £2 million and above | Commercial | 75% | 7.55% Variable | 2% |
| £2 million and above | Semi-Commercial | 65% | 6.45% Variable | 2% |
| £2 million and above | Semi-Commercial | 75% | 6.69% Variable | 2% |
| 1 million and above | Commercial | 65% | 7.19% Variable | 2% |
| 1 million and above | Commercial | 75% | 7.85% Variable | 2% |
| 1 million and above | Semi-Commercial | 65% | 6.69% Variable | 2% |
| 1 million and above | Semi-Commercial | 75% | 6.99% Variable | 2% |
| £250,000 to £999,999 | Commercial | 60% | 6.99% Variable | 2% |
| £250,000 to £999,999 | Commercial | 75% | 8.55% Variable | 2% |
| £250,000 to £999,999 | Semi-Commercial | 60% | 6.49% Variable | 2% |
| £250,000 to £999,999 | Semi-Commercial | 75% | 7.6% Variable | 2% |
Interest rates for commercial mortgages don’t tend to be set based on Loan to Value, as they often are with many residential mortgages.
Commercial mortgage interest rates and fees will be based on a consideration of the following factors:
How long the business has been trading - Businesses that have been established longer will be considered less risk. Unless of course it is a business that the lender feels may have a limited future. For example a video library or cigarette vending machine manufacturer (ban on smoking in public places).
New businesses tend to be considered higher risk because when compared to established businesses a higher proportion of new businesses fail.
Our calculator has been created to provide you with an approximate guide to the costs of a commercial mortgage. We work with a lot of lenders who offer different rates, calculate interest in different ways, and have different fee structures.
However, as independent brokers we find our customers the facilities that offer them the best possible deal.
Please use our commercial mortgage calculator as often as you like to help you decide what commercial mortgage option would be the best for your business.
Commercial mortgages are used to fund the purchase of commercial property or land which will be used for business purposes. Like a traditional, residential mortgage, the money borrowed will be secured against the asset. Commercial mortgage terms typically range from 3 to 30 years.
Usually the most cost effective way to raise additional business funds is through a commercial re-mortgage.
Commercial re-mortgages are available to raise capital for most business purposes including expansion, modernisation, to reorganise finances by consolidating more expensive finance facilities or to provide a working capital cash injection.
Finance to purchase or re-mortgage properties that are used for both residential and commercial purposes can be provided through the use of semi-commercial mortgages.
An example of a semi-commercial property would be a retail shop that has residential accommodation attached.
Bridging loans are only intended to be used as a short-term finance facility. Therefore, before taking out a bridging loan it is very important to have an exit strategy in place. A popular exit strategy for bridging loans is to refinance using a commercial mortgage.
A commercial mortgage being used as an exit strategy to repay bridging finance would occur when the completion of a commercial property purchase had to be achieved very quickly, or when the commercial property is unsuitable security for the mortgage provider because it is in a poor state of repair. Following completion of repair and restoration work, the short-term bridging loan will be repaid through refinancing, using a long term commercial mortgage facility.
It is important to realise that considerable financial savings can be made if you are able to skip the initial bridging loan and go straight to the commercial mortgage.
You can have a free, no obligation discussion with one of our advisors who will be able to tell you what your options are. If you are interested, we can then provide you with written terms within a couple of hours.
This is possible with a higher deposit, usually of around 50% of the purchase price. Since you don’t have any trading history to demonstrate your ability to repay the mortgage, the higher deposit is needed to reduce the risk associated with lending of this nature.
Yes, we can arrange interest only commercial mortgages for terms up to 10 years.
We work with specialist lenders who have greater flexibility than the High Street Banks, so we may still be able to assist you. Give us a call for a free, no obligation chat to find out whether we can help you.
The commercial mortgage calculator on this website is there for you to use as much as you want, for both repayment and interest only.
You can also call us to speak to an advisor for a free no obligation quote.
A deposit of 25% is usually the minimum required. If the property is going to be occupied by you, it might be possible to get LTV of 80%
The more money you can invest means you can access better rates, as borrowing with the highest Loan To Value (LTV) means you can only access the highest rates.
There are no upfront application fees to pay with KIS Finance, and these are the fees you would likely need to pay:
Last updated: 27 February 2024 | © KIS Bridging Loans 2024