Is now the right time to invest in commercial property?
- George Christou
- Jul 7
- 2 min read
Updated: 3 days ago
With the commercial mortgage market showing signs of renewed activity, many UK business owners are considering whether this is the opportune moment to invest in commercial property. Recent data indicates a nearly 10% year-on-year increase in loans to real estate businesses, reaching £177 billion—the fastest growth in over a decade.
Understanding commercial mortgages
A commercial mortgage is a loan secured against a property intended for business use. This could be for purchasing premises to operate your business or as an investment to rent out to other businesses. Typically, lenders require a deposit ranging from 20% to 40%, and interest rates are generally higher than residential mortgages due to the increased risk.
Types of commercial mortgages
Owner-occupied mortgages: For businesses purchasing premises to operate from.
Commercial investment mortgages: For investors buying property to lease to other businesses.
Mixed-use mortgages: For properties with both residential and commercial elements.
Key considerations
Interest rates: These can vary based on the lender and the borrower's financial profile.
Loan terms: Typically range from 5 to 25 years.
Eligibility: Lenders assess factors like business financials, credit history, and the property's value.
Is it the right time?
While the market is showing positive signs, it's essential to assess your business's financial health and long-term goals. Consulting with a financial advisor or mortgage broker can provide personalised insights.
If you're considering a commercial mortgage or want to explore your options, get in touch for tailored advice. Call 01202 985214 or send us you details and we'll get straight back to you.
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