Mortgages: Residential v commercial

holly_hobby

The residential aspect takes it from full commerical to semi-commercial - thats why I've cited a loading of circa 2%, full commercial loading is higher than this. Your planned use of the property as a business takes it completely out of residential lending paramaters.

If any aspect of the mortgage repayment is to be supported from commerical income, you will still need to jump through all the hoops already discussed - as a viable business needs to generate income and profit and the lender will look to establish that both are probable from your business plan and forecasts.

You really need to speak to a commercial broker on this ... or to avoid a fee at this early stage, have a brief run through with you bank - and see what their comments are, which will point you in the direction of whether this is worth pursuing or not.

A main hurdle will be if you have no previous experience of running a business, seconded by no experience of running a business in the elected market you wish to trade in.

Hope this helps

Holly