What is the average deposit for a commercial property?

Typically, the average deposit required for a commercial property is roughly 30-40% of the total purchase price.

30-40% is the industry medium although some lenders offer mortgage products with around 20 or 25% deposit, although the interest rate tends to be higher than if you contributed a higher figure.

Commercial mortgages follow the same rule as residential mortgages in the aspect of a higher deposit equalling a lower interest rate. However, a going rule is that a commercial mortgage is slightly more difficult to obtain than a residential loan.

With a 30-40% deposit for your commercial mortgage, you’ll find there’ll be plenty of mortgage products for you to pick from at some very competitive rates and favourable terms.

More than likely, you will have to specify which kind of commercial mortgage you’re looking to obtain. There are two main types of commercial mortgage.

  • Commercial buy-to-let mortgage

  • Owner-occupier mortgage

Dependant on which mortgage you’re looking to obtain will differ the rates, deposit and terms. You’ll also provide different documentation for credit checks dependant on your mortgage option.

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