A Comprehensive Overview of Commercial Mortgages
                     A Comprehensive Overview of 
Commercial Mortgages
HTTPS://WWW.COZMOMORTGAGES.COM/
Do you want to grow your business? Have you realised that the cost of renting 
has become prohibitively expensive? If this is the case, you may discover that a 
commercial mortgage can provide business financing options that you were 
previously unaware of. Everything you need to know is as follows:  
What Exactly Is a Commercial Mortgage?
Commercial mortgages are used to purchase (or refinance) any land or property for commercial purposes. 
Money is borrowed and secured against a property, much like a traditional residential mortgage.  
They can also be used to expand an existing business or to develop residential or commercial property. They 
tend to be the primary resource for financing any business development plan by securing a business to a 
property (e.g. pubs, restaurants, guesthouses).
Commercial mortgages have a smaller market share than residential mortgages, but their total value is 
disproportionately high. A commercial mortgage, as opposed to a residential mortgage, provides financing in 
four distinct ways:  
• Commercial mortgages are designed to meet the needs of both the lender 
and the borrower. The lender requires security on their loan, and the 
borrower desires to benefit from lower repayments (compared to 
• PURCHASING A 
COMMERCIAL PROPERTY   renting). 
SECURING LAND • A commercial property mortgage is typically a long-term loan (often up to 
DEVELOPMENT PROJECTS   25 years) that provides funds to purchase a commercial property. The 
CREATING A SOLE mortgage lender will typically lend up to 70% of the property's value, 
PROPRIETORSHIP   leaving the business to make regular mortgage payments while using any 
available working capital to fund growth.   
INCREASING A BUY-TO-LET 
PORTFOLIO  
• Because most commercial mortgages only cover up to 70% of the total 
value of the property, the lender must rely on the business to raise the 
remaining funds. This is frequently a significant sum of money to come up 
with.  
Long-Term Advantages of a Commercial Mortgage 
• A commercial mortgage can do much more than just provide a place for your 
business to operate; they are increasingly being viewed as a source of business 
• Make available capital for funding.
investment or growth. 
• When you own your own business space, you reduce your exposure to rising 
• Consolidate commercial debts 
rental costs. Commercial mortgages can help your business plan for the future 
• Purchase new equipment  by allowing it to access equity as the value of the property rises over time.  
• Increase trading  • There are several advantages to selecting a commercial mortgage, many of 
which seek to provide future sources of funding and finance:  
• less expensive than renting 
• A commercial mortgage can be used by a business owner to purchase a 
• Option to sublet or lease portions 
of the property to generate commercial property for their own use, to rent out, to purchase a company, or 
additional income.  to unlock the equity in already owned buildings. As long as you have tangible 
assets to secure against, it has become an increasingly flexible way of financing 
your property purchase.  
What You Should Know Before Applying For A Commercial Mortgage  
• Accounts for the last three years 
(or tax returns) 
• Figures for current and projected There are numerous lenders who provide commercial 
performance  mortgages. It is critical to select the best one for you. 
• Account statements 
Rates and commercial specialization can vary. Some lenders 
• Details and profiles of all of the only lend when there is a substantial amount of asset 
company's directors and 
  security available, whereas others prefer to lend to owner-partners
operators or will only fund land developments.  
• Statements of assets and 
liabilities. 
Mortgage Phrase Repayment
The loan term can also vary greatly, Interest rates are typically higher than 
ranging from 5 to 40 years. It's a for residential mortgages because the 
significant financial commitment, so lending is deemed more risky. You will 
you should know what you want from almost certainly be required to make a 
your commercial mortgage as well as larger deposit of at least 30%, which 
what your mortgage lender wants translates to a lower loan to value (LTV) 
from you.   rate with the benefit of greater equity.
Previous Credit History  Property Utilisation 
Your credit history will have a significant Not all commercial mortgages are the 
impact on whether or not your same; the amount you can borrow and 
commercial mortgage application is the interest rate offered will be 
approved. However, it is not always the affected by what and how you use 
sole focus that is taken into account; you your property. 
will also need to provide a complete 
picture of your company, including 
projections and a business plan. 
Renting Out Your Home  Refurbishment 
A popular and viable option for Always consider the cost of renovating, 
business owners looking to maximise installing amenities, decorating, and 
the earning potential of their property general property refurbishment. 
while offsetting the cost of their 
Source: https://penzu.com/public/6659716e
repayments. 
If you are a new business in need of a commercial mortgage, looking to develop a commercial 
property, or looking to refinance your commercial mortgage, call us today at 97145587195.
Contact Us
Mail on: [email protected]
Address: 803, Silver Tower, Business Bay, Dubai, 
P.O.Box 238065
Contact Number: 97145587195
Visit: https://www.cozmomortgages.com/