This mortgage is designed for buying a property to rent out, or one which is let already. It can also be used to buy a property through a pension scheme.

N&P can offer up to 75% of the lower of the purchase price and the open market vacant possession or investment valuation. Where the tenant is a household name, lower interest rates and higher loan to value ratios are sometimes available.

We consider the following properties suitable for investment purposes:

  • Industrial units, factories and warehouses
  • Offices
  • Retail shops
  • Restaurants

We also lend for Self Invested Pension Scheme and Self Administered Pension Scheme purchases.

All loans are subject to status and secured against property. Sometimes other, additional security may be required. We do not lend to offshore companies.

We offer:

  • Attractive interest rates linked to LIBOR*, Bank Base Rate or fixed rates
  • A flexible, offset and green mortgage
  • Personal service
  • Fast award-winning service and turn around
  • Up to 75% loan to value
  • Experienced lending team
  • No fees charged for annual reviews
  • No compulsory insurance arrangements

* LIBOR stands for London Inter Bank Offer Rate. It's the rate of interest at which banks offer to lend money to one another in the City of London.

I am buying a commercial property for my business that has a flat above it. Can I take out a commercial mortgage, even though some of the property is residential?

It all depends on what your plans are for the flat.

If the residential part is less than 40% of the whole property, then you can take out a commercial mortgage, regardless of what you intend to do with the flat.

However, if the flat is more than 40% of the total area, the rules are a little more complicated. If you are intending to let the flat out on an Assured Shorthold Tenancy, you can still have a commercial mortgage. On the other hand, if you plan to live in the flat, you need to take out a Regulated Mortgage, in which case, unfortunately, we can't help you.

I want to buy a commercial investment property. How does N&P assess the expected rental income compared to the amount I can borrow?

As a Building Society, N&P focuses on owner occupier mortgages and looks to the applicant's trading business to service the loan. With an investment property applicant we adopt the same approach, so providing your business can demonstrate the ability to service the investment mortgage (without the rental income) we will be happy to assist.

 

View All Frequently Asked Questions

BY PHONE

  • Call our dedicated Commercial Mortgages team on 01733 372 378.

IN PERSON

  •  Drop into any branch - you'll get all the help you need there.

BY EMAIL

  • Scanned copies of your applictaion documents can be sent to our dedicated Commercial Team at lending.team@nandp.co.uk

BY POST

  • Write to us at:

Norwich and Peterborough Building Society
Commercial Lending Department
Principal Office
Peterborough Business Park
Lynch Wood
Peterborough
PE2 6WZ

PAPERWORK WE'LL NEED TO SEE

  • A fully completed application form.
  • The last three years' audited or certified accounts of your clients business. (If only two years' accounts are available we will consider their application but they may have to pay a higher rate).
  • Your clients last six months' business and personal bank statements.
  • Details of your clients background and experience.

Download Application form.

HOW MUCH? HOW LONG?

  • We offer Commercial Mortgages from 5 to 25 years
  • You can borrow any amount from £75,000 up to £10,000,000
  • The LTV we work to is usually 75%
  • Your interest rates will be linked to the Bank Base Rate, LIBOR*, or a range of fixed rates

WHAT ELSE DO YOU GET FROM N&P?

  • We offer Green Mortgages for energy efficient buildings or environmentally friendly companies
  • Reduced accounting information - minimum 2 years' accounts
  • Flexible - combine mortgage with an overdraft facility
  • Offset - use your business credit balances to offset up to 30% of the mortgage
  • Experienced in Pension Scheme & Self Build lending
  • Lending Managers visit all customers with loan amounts over £100,000
  • Ability to repay up to 50% of balance of loan from year 1 without incurring early repayment charges, with variable products
  • Fast, efficient and personal service from application through to completion
  • VAT bridging facility available for a period of 12 weeks on an interest only basis

* LIBOR stands for London Inter Bank Offer Rate. It's the rate of interest at which banks offer to lend money to one another in the City of London.

THIS AREA IS FOR PROFESSIONAL INTERMEDIARIES ONLY
AND SHOULD NOT BE VIEWED BY POTENTIAL CUSTOMERS