Commercial mortgages, often referred to as business mortgages, are essential for various enterprises, including boarding kennels and catteries.
Whether you are launching a new venture, expanding an existing one, or embracing a fresh opportunity, Needingadvice.co.uk is dedicated to streamlining the process of securing your commercial mortgage.
Operating a kennel or cattery offers distinctive advantages—after all, not everyone gets to spend their days with furry friends! However, these businesses also face unique challenges. Our goal is to ensure that obtaining a mortgage is an effortless step in your journey.
The article is updated as of Feb 14 2025
The Financial Conduct Authority do not regulate commercial mortgages.
Commercial mortgages by referral only
How We Work
1: We contact you and take down your details, income outgoings, name, address etc.
2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.
3: You upload the documents and information needed via our channel our online portal.
What is a commercial mortgage?
A commercial mortgage is a loan secured against a non-residential property. Generally, these mortgages are utilised to purchase, refinance, renovate, or develop properties intended for business activities. Lenders typically provide commercial mortgage terms that span from 3 to 30 years.
Types of commercial mortgages:
The type of mortgage you require will heavily depend on your circumstances.
Owner-occupier commercial mortgage
Owner-occupier commercial mortgages are commonly utilised by business owners to refinance or acquire properties that they will operate from, such as boarding kennels. Typically, commercial mortgage lenders offer up to 75% Loan to ValueThe ratio of the mortgage amount to the value of the propert... for these types of mortgages.
Commercial investment mortgages
These are frequently sought by individuals interested in acquiring commercial properties, including houses of multiple occupations (HMOs). Typically, lenders will offer up to 65% Loan to Value for a commercial investment mortgage.
Requirements for a Commercial Mortgage
Typically, borrowers will have to meet certain criteria before securing a commercial mortgage.
Credit history/Business accounts/Profit and loss accounts
To secure commercial finance, borrowers must furnish specific documentation, including their credit history, business accounts, and profit and loss statements. This information enables the lender to make informed decisions and assess the likelihood of successful repayment for the commercial mortgage.
Security
Commercial lenders typically require a non-residential property to be secured against the commercial mortgage. This requirement safeguards the lender’s interests, providing them with a recourse if the borrower struggles to meet the mortgage repayments.
Deposit
In contrast to residential mortgages that usually mandate a 10% deposit, securing commercial finance typically necessitates a deposit of up to 30%.
Steps to Secure a Commercial Mortgage for Boarding Kennels
If you require a commercial mortgage and lack extensive knowledge of the financial services sector, consulting a professional broker is highly recommended. At Needingadvice.co.uk, we offer a comprehensive overview of the mortgage options suited to your situation. We will evaluate your unique circumstances and customise a mortgage solution that meets your specific needs.
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