What is a commercial and buy to let finance?

Commercial finance covers a range of loans used for business purposes. Where property is concerned, a commercial mortgage will be the most appropriate type of loan, as this product is designed for people wishing to purchase commercial premises, expand their existing premises, invest in commercial property or develop a property.

Most commercial mortgages have a term of 15 years or more and are given for substantial amounts, from £15,000 up to around £500,000. The property is the asset used to secure the loan – just the same as a domestic mortgage - and the lender retains a legal claim over the property until repayment of the loan is complete.

Buy to let finance is designed for investors wanting to purchase a property and let it out to tenants. The owner can benefit from any increases in property value, while rental income can be used to meet the loan (mortgage) repayments.