Commercial Mortgages for Buy to Let Investors | Commercial Landlord Mortgages 

A Commercial Mortgage is a loan secured on commercial property, such as:

• Offices 
• Shops 
• Warehouses 
• Workshops 
• Factories 
• Garages

By obtaining a commercial mortgage, you can be investing what rent you would have been paying into a property you will ultimately own. Many businesses have taken this route due to the tax advantages (get expert advice) and that fact that at the end of the term (5-25years), you will own the property outright.
Similar in terms such as a residential mortgage, the lender hold the title deeds to the property as security, and in any event of arrears, the lender can repossess the commercial property.

Generally, commercial mortgage rates depend on the industry sector and you and your business' track record. The lenders will give the proposition a risk analysis that will highlight what they deem to be an acceptable risk and one that is a high risk. Obviously, the higher the risk the higher the interest rate.

The commercial mortgage sector can be split into two groups:

Owner Occupied: The owner of a business who wants to fund their premises.  This is an excellent way of investing in your property portfolio. If your business is strong, and you have the ability to pay rent for the same length of term as your mortgage, this type of investment may suit you.

Buy to Let: A potential landlord purchases a commercial property solely for investment purposes. From this, the landlord will rely on the rental income to pay the mortgage and potentially make a profit.

Note: It is essential that any potential purchaser of commercial property gets legal and commercial advice. There are many statutes and terms in commercial property law, and these can have a detrimental effect on any buy to let commercial property.