Commercial mortgages and loans

[sallysqueak]

Hi

I run a dog daycare from home currently.

I'd love to move into a detached property with land to allow for expansion, but don't even own my own property currently. As you'll already know, getting a property with land is around 350k upwards, so there's no way I can just go and get a residential mortgage for this.

I was just wondering, how do commercial mortgages work? Are you given a higher amount to play with when applying? Currently myself and husband can get around a £100k residential mortgage.

Is there anything we can do? Or is it a lost cause?

Thanks!

 

[ethical PR]

Normally with a commercial property I believe you need to put 30% down as a deposit.

If you could only afford a 100,000 mortgage between you for a residential mortgage I'm not sure how you would plan to afford payments on a 250k plus mortgage assuming you had a deposit available.

Perhaps you would be better off looking for a smaller facility for rent until you can grow your business?

 

[tony84]

Its not quite as simple as your working from home you need a commercial mortgage.

If 40% of the property is residential then its classed as a residential mortgage.

Also would you not need a license of some sort? No offence but if I had a home and you moved in next door with dogs barking all day I would want to throttle you.

I would suggest you speak to a broker of some sort - presumably a normal residential mortgage broker rather than a commercial mortgage broker unless your business is going to take up 61% of the property.