Commercial Mortgages - Fees

Commercial mortgages are generally for higher loan amounts than residential property. All the legal work also tends to be more complicated than for residential homes. Therefore fees will be higher than if you are taking out a mortgage on your home.

You will be expected to pay a valuation fee on any properties being used as security. The fee for this is usually 0.2% of the property value. You will be notified of the amount after the valuation has been carried out.

You will be charged a Good Faith Deposit once we have made you a mortgage offer. This covers any costs to the lender of setting up your loan. The price you will pay depends on the amount of money you wish to borrow. This currently stands at £500 for loans up to £250,000 and £1,000 for loans above £250,000. This is a deposit and will be deducted from the completion fees when your mortgage completes. However it is non refundable if you do not complete with us.

You will be charged an arrangement fee if you complete your mortgage with us. This will be charged at 2.00% of the value loaned to you with a minimum charge of £2,000.

On completion of your mortgage, a completion fee of 1.5% of the total value loaned to you will be charged.

We have our own firm of solicitors who are experts in commercial conveyancing. This can be a very complicated process due to the different titles and covenants involved with commercial premises. We therefore recommend that you use our solicitors to complete your mortgage. If you are taking out a mortgage to refinance your business, we may be able to offer you a deal to waive the solicitor’s fees. In all other cases, legal fees will be due.

Early Repayment Fees

Like all lenders, we have to cover the costs of setting up a commercial mortgage in the first few years of lending the money. This is why we charge an early repayment fee as set out below:

The final fees charged to you will be set out in the loan agreement. You must consult your solicitor for a full explanation and advice.

More Commercial Mortgage Topics:

• Would It Work? - why a commercial mortgage would work for your business
• Use and Benefits - weigh up the pros and cons
• Who Can Get One? - who can take out a commercial mortgage?
• Bad Credit History - don't let credit history stop you
• Self Certification - make sure you have the right documents
• Property Types - property types that we allow
• Our Commercial Mortgages - how our mortgages work
• Interest Rates - understand interest rates with some examples
• Security - make sure you're secure
• Fees - understanding confusing legal fees
• Filling in an Application Form - don't worry they're easy - learn here

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