Commercial mortgages are available for either a business’ own use or for investment properties. Facilities can be up to 30 years and can include an interest only period and in some case interest only for the whole period. Facilities are usually on a variable basis, so repayments will change in line with base rate changes (often linked to libor as opposed to bank base rate) although there is a minimum base rate applied. The maximum advance on a commercial property tends to be 75-85% Maximmum, although many (more usual) restrict to 60%. SMEBF are able to raise the deposit and cover fees by using other products so that it is possible to raise up to 100% financing. Existing owned properties can be re-mortgaged to access tied up capital.
