If you are starting up or expanding your own business and are buying new premises, you may need a commercial mortgage. Commercial mortgages work in a similar way to residential mortgages where a loan is taken out to buy the property. The loan is usually secured against the business premises, although residential property can be used in some cases.
Mortgage lenders often have specific criteria you will need to meet in order to qualify for a commercial mortgage. Typically they will require you to have a positive credit rating, and will expect to see a business plan and financial projections to make sure the company is profitable. The rates and fees are also usually higher for commercial mortgages than residential mortgages, and in most cases require a substantial deposit.