Commercial Mortgage

If you're planning to move, expand or improve your company premises, a Commercial Mortgage can help you plan your development in a manageable and affordable way.

Your property may be repossessed if you do not keep up repayments on your mortgage

At a glance

  • Borrow up to 75% of the purchase price or professional valuation (whichever is lower)

  • £25,001 minimum loan amount - with no maximum limit

  • Repayment period between 2 and 30 years

  • Select a variable1 or fixed2 rate with monthly or quarterly repayments

  • Variable rates can track the Bank of England Base Rate3 and near Risk Free Rate (RFR) such as SONIA, SOFR, TONAR and SARON4.

  • Optional capital repayment holidays for all, or part, of the first 24 months5

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Interest rates

Interest rates are charged as a margin over a currency reference rate (for example Bank of England Base Rate and near Risk Free Rates (RFRs) such as Sterling Overnight Index Average (SONIA) or the cost of funds for fixed interest rate loans.

  1. Variable rate1 – you pay an agreed interest rate margin, which is added to reference rates such as the Bank of England Base Rate or a RFR. This allows you to benefit if interest rates fall, but could leave you exposed to increased repayments if rates rise.
  2. Fixed rate2 – you have a fixed payment amount so you can be sure of the amount of your repayments for the fixed term.

* Non-sterling currencies, Risk Free Rate (RFR) linked facilities, such as SONIA, SOFR, TONAR or SARON are subject to eligibility criteria and only available to businesses with turnover of £25m or above. Contact your relationship manager for further information.

Important information

Your property may be repossessed if you do not keep up repayments on your mortgage

1 If the loan is repaid early, a prepayment fee will be payable.

2 If the loan is repaid early, a prepayment fee will be payable and if you repay the loan within a fixed rate period, you will also have to pay a fixed rate break fee.

3 Variable debit interest is payable on your loan and tracks the Bank of England Base Rate. If the Bank of England Base Rate falls below zero, we will treat it as zero.

4 £1m is the minimum amount available for variable, non-sterling currencies and RFR linked loans. Availability is subject to eligibility criteria and only available to businesses with turnover of £25m or above. If the RFR for any day for any interest period is less than zero, the RFR for that period shall be deemed to be zero.

5 Deferring capital repayments will increase the total interest charged and therefore the total amount payable over the full term of the loan. Following a capital repayment holiday, your repayments will be higher to ensure your loan will be repaid by the end of the term. Not available for fixed rate loans.

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