A guide to raising a 100% commercial mortgage
For small to medium-sized businesses raising the funds for a commercial mortgage deposit can be challenging, while for some it can be next to impossible. If your funds are tied up in property or other forms of assets, or you would rather conserve your working capital, it is possible to raise a 100% commercial mortgage.
Few high street banks will make this type of mortgage available for businesses other than professionals, such as accountants, solicitors, doctors and veterinary surgeons. However, some other commercial lenders sometimes make this type of mortgage available for non-professionals.
What is a 100% commercial mortgage?
A 100% commercial mortgage uses the security for the property you are seeking to purchase plus any additional assets you are willing to provide in lieu of a cash deposit.
What assets can be used as security?
The most likely assets that can be used as additional security are:
- Residential property with remaining equity
- Commercial property with remaining equity
- Land with a realisable value
If you plan to use land as additional security you should be aware that land with planning capability or consent is more valuable than undeveloped agricultural land.
Are there any additional charges?
There are often additional costs involved with raising a 100% commercial mortgage for example, additional legal and valuation fees, however these could be added to the mortgage total provided there is sufficient security overall.
Contact us to find out more about how The Diverse Finance Company can help you raise a 100% commercial mortgage or take advantage of other business finance solutions.
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