Mortgage solutions for your business
Whatever stage your business is in, we're here to support you in securing your first or next commercial mortgage premises. We offer funding to invest in both residential and commercial purchases.
1 to 5 years
terms available, with a potential 20 year repayment profile. A 25 year repayment period can be considered for residential investment portfolios
Competitive interest rate
Variable rate or fixed rates available, subject to amount of borrowing
Bank of England Base Rate
5.25%, plus our agreed interest margin
Why apply for a Commercial Mortgage?
- Flexible repayment terms improving control of your finances
- Interest-only options available based on a lower loan to value
- Fixed Rate terms available between 1 and 5 years with a potential 20 year repayment profile or 25 years for residential investment portfolios
- Residential property investment funding for professional landlords
Find out how to apply for a Commercial Mortgage.
Check eligibility for you and key individuals
- 18 or over
- A UK resident with a business or charity address in the UK
- Authorised to borrow on behalf of the business or charity
- A Co-operative Bank business current account holder
The Commercial Mortgage is available for business use only.
Key information
Asset purchases must be in the name of the borrower or business.
You, as the borrower, are liable for 100% of the lending total.
Your purchased property is secured against the loan to guarantee repayment.
Funding is not available for property development, pension funds or businesses domiciled outside of the UK.
Interest, fees and loan to value
Interest
Charged monthly or quarterly. For sole traders and partnerships, your personal financial circumstances will also be taken into account.
Variable Rate Loans
The interest rate is variable and linked to the Bank of England Base Rate, plus the appropriate interest margin which will be determined by the financial status of your business. This means the interest rate that you pay will change as base rate changes.
Fixed Rate Loans
A fixed rate loan has a fixed interest rate for the whole term. Fixed rate loans are less dependent on market conditions giving you confidence that you will meet your financial obligations.
There is always a possibility that interest rates may go down, leaving a fixed rate loan at a higher rate of interest compared to a variable rate loan.
Break and amendment costs
(Fixed rate loans only)
Break or amendment costs may apply if you repay part of or all of your fixed rate loan before the end of the agreed term, or if the terms of your fixed rate loan are amended before the end of the fixed term. Break or amendment costs only apply for fixed rate loans. There are no break or amendment costs for variable rate loans.
Arrangement fees
Discussed upon application.
Security fees
Discussed upon application
Lending is typically offered on a secured basis. Please note that there will be additional fees when security is required. Fees will be discussed throughout the application process and will depend on your individual circumstances.
Security fees are the costs you’ll need to cover so that the Bank can secure the lending. For example, the cost of registering a Legal Charge over a business property.
If we are able to consider lending on an unsecured basis we will discuss this with you during the application process.
Max. loan to value
We can offer 70% of the market value in funding depending on the sector. For vacant possession properties, we can offer a maximum 80% of the value. Loan to value (LTV) is the ratio of bank funding to the value of the asset over which the Bank will be granted security.
"With The Co-operative Bank, nothing is too much trouble. The communication helps put your mind at ease."
Sarah Lock, Executive Director at Lock Plymouth Ltd
Please note: Fixed rate commercial mortgages are only available for lending of £250,000 or more.
All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on your business and key individuals (including directors and shareholders).
Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your loan or other debts secured on the property.
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
Loans of £250,000 or more
If you would like to apply for a loan of £250,000 or more, please get in touch with one of our Relationship Managers. They will discuss your lending requirements with you and tell you what information you’ll need to send us.
Loans below £250,000
Step 1. Gather the information you’ll need to apply
To apply for the Commercial Mortgage, you’ll need:
- your Co-operative Bank business current account details, including account name, account number and sort code (if you do not yet have a Co-operative Bank business current account, we will help you open one if your lending application is successful)
- information on your tax status
- details of existing business borrowing
- personal details and details of assets, liabilities, and income and expenditure for all individuals registered and/or with authority to transact on your existing Co-operative Bank business current account.
- your full annual accounts from the past 3 years
- bank statements from the last 6 months
- 12-month cash flow forecast (if available)
- aged receivables list/debtor book (if available)
- any formal property valuation documentation from the past 5 years (if available).
Step 2. Send the information to us
Send the information gathered in Step 1 as PDF attachments to the email address below. We’ll get back to you on next steps (see application timeline below):
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Variable
Gather and send us the information
Gather the information listed in Step 1 and send it to the email address provided.
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Within 2 business days
We’ll get in touch with you
We aim to get in touch with you within 2 business days of you sending us your information required. We might ask you for some additional information at this stage.
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Within 10 business days
You’ll receive a decision from us
We aim to give you a decision within 10 business days of your full application being received. Occasionally, we may require additional information depending on your circumstances.
Application timeline
for applications over £250,000
If you do not get through to a Relationship Manager straight away, they will contact you within 2 business days of your initial phone call or email to talk through your application with you and discuss next steps.
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