Commercial Mortgages in Reading & Caversham
Commercial mortgages are used to finance business premises or commercial investment properties. Whether you want to buy your business premises, invest in commercial property, or refinance existing commercial debt, we have access to specialist commercial lenders who understand business financing.
Commercial mortgages work differently from residential mortgages. Lenders assess the business case, property value, rental income potential (for investment properties), and your business financials. Commercial mortgages typically have higher deposit requirements (usually 25-40%) and different term lengths.
Types of Commercial Property Finance
- Owner-occupied premises: Your business owns the building it operates from
- Commercial investment: Buying property to rent to business tenants
- Semi-commercial: Mixed-use properties with residential and commercial elements
- Specialist properties: Hotels, care homes, petrol stations, etc.
How Templar Mortgages helps you
Free Consultation
We start with a free, no-obligation conversation about your situation. We can meet in person at our Caversham office, over the phone, or by video call.
Search & Recommendation
Our specialist team that deals with commercial finance will search our panel of lenders to find the options that best suit your circumstances. We explain your choices in plain English and recommend the most suitable solution.
Application to Completion
We handle everything from application through to completion. You will easy access to your adviser throughout, making the process smooth and stress-free.
Why choose Templar Mortgages?
Plain English
We explain everything in clear, simple language without confusing jargon.
Local Expertise
Based in Caversham, we understand the Reading and Berkshire property market.
Extensive Market Access
We search our large panel of lenders for the right solution for you.
Transparent Fees
No hidden charges. We tell you upfront what our service costs.
Common questions about commercial mortgages
What is the minimum deposit for a commercial mortgage?
Commercial mortgages typically require a deposit of 25-40% of the property value, significantly higher than residential mortgages. Some lenders may accept 25% for strong applications, but 30-40% is more common. The larger the deposit, the better the interest rate you will typically access. The exact requirement depends on the property type, your business financials, and the lender.
How do commercial mortgage rates compare to residential rates?
Commercial mortgage rates are typically 1-3% higher than residential mortgage rates. This reflects the higher risk lenders associate with commercial property. Rates also vary depending on whether the property is owner-occupied or an investment, the property type, your deposit size, and your business strength. We search our panel to find you the most competitive commercial rates available.
Can I get a commercial mortgage for a business I am starting?
Most commercial lenders want to see established trading history, typically at least 2-3 years of accounts. Startup businesses find it very difficult to secure commercial mortgages unless they have significant deposits (40%+) and strong business plans. If you are starting a business, you may need to initially rent premises or consider alternative financing options until you have trading history.
What is the difference between owner-occupied and investment commercial mortgages?
Owner-occupied means your business owns and operates from the premises (e.g., your shop, office, or warehouse). Investment means you own the property to rent to business tenants. Lenders view owner-occupied properties more favourably and often offer better rates because you have a vested interest in maintaining the property and making mortgage payments. Investment commercial mortgages are assessed more heavily on rental income.
How long are commercial mortgage terms?
Commercial mortgages typically have terms of 15-25 years, shorter than residential mortgages which can be 30-35 years. Some lenders offer longer terms for strong applications. The term affects your monthly payments, longer terms mean lower monthly payments but more interest paid overall. We help you balance affordability with overall cost.
What expenses can I claim on a commercial mortgage?
If you own commercial property for investment, you can usually deduct mortgage interest, repairs and maintenance, insurance, property management fees, and other running costs from your rental income before calculating taxable profit. If you own premises your business operates from, the mortgage interest may be deductible as a business expense. Tax rules are complex, so you should consult an accountant for advice specific to your circumstances.
Can I convert a commercial property to residential?
This depends on planning permission and your mortgage terms. Some commercial mortgages include clauses restricting change of use. If you want to convert a commercial property to residential use, you need planning permission from the local council and consent from your lender. You would also typically need to refinance onto a residential mortgage. We can help you navigate this process if conversion is your plan.
Do I need a business plan for a commercial mortgage?
Yes, most lenders require a business plan for commercial mortgages, especially for owner-occupied properties. Your business plan should include your business history, financial projections, market analysis, and how the property will support your business operations. For investment properties, lenders focus more on rental income projections and property valuation. We can advise on what lenders want to see.
Ready to Discuss Your Needs?
Commercial Lending is not regulated by the Financial Conduct Authority. The products and services promoted here are not part of The Openwork Partnership offering and The Openwork Partnership accept no responsibility for this aspect of our business.
