Not every property purchase fits into a standard mortgage box. When you are looking to grow a business or capitalise on a property opportunity, understanding the specialist finance landscape is the first step.

Specialist funding solutions to help your business and property projects move forward

A commercial mortgage is a loan secured on property that is not your primary residence. It is typically used for land or buildings that generate income or house a business.

There are two main types:

1. Owner-Occupied: For business owners who want to buy the premises they trade from (e.g., a shop, office, or warehouse). This often replaces your monthly rent with a mortgage payment, building an asset for your business.

2. Commercial Investment: For those looking to buy a property to let out to another business as an investment.

Key Consideration: Lenders will look closely at the "yield" of the property or the "affordability" based on your business accounts

What is a commercial Mortgage?

What is Bridging Finance?

Think of bridging finance as a "short-term loan" designed to get a deal over the line quickly. It is typically used for periods of 1 to 18 months while a more permanent financial solution is arranged.

Common Scenarios for Bridging:

• Auction Purchases: Most auctions require completion within 28 days-faster than a standard mortgage can usually move.

• Property Refurbishment: If a property is "uninhabitable" (e.g., no working kitchen or bathroom), standard lenders won't lend. A bridge allows you to buy and renovate it before switching to a standard mortgage.

• Chain Breaking: If you’ve found your perfect property but your current one hasn’t sold, a bridge can "bridge the gap" so you don’t miss out.

Unlike residential mortgages, the commercial and bridging markets are highly fragmented. Many of the most competitive rates come from "challenger banks" or specialist lenders who do not have a high-street presence and only accept applications via professional intermediaries.

The process usually looks like this:

• The Exit Strategy: For bridging, lenders' first question is usually: "How will you pay this back?" This is known as the "Exit." We can help you plan this from the start.

• Property Type: From mixed-use (flats above shops) to industrial units, every lender has a different "appetite" for different property types.

• Valuation: Commercial valuations are more in-depth than residential ones, focusing on the business potential or rental income of the site.

Navigating the Specialist Market

Every project is unique. If you are weighing up whether to buy your trading premises or wondering if a bridging loan is a viable way to secure an auction deal, it’s often helpful to talk through the numbers.

At Mortgage Minder, we help simplify these complex options so you can make an informed decision for your business or portfolio

Is specialist finance right for your project?