Our commercial investment property mortgage is designed for buying a commercial property to rent out, or one which is let already. It can be used to buy a property or raise capital against an existing investment property. 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.
We consider the following properties suitable for investment purposes:
- Industrial units, factories and warehouses
- Retail shops
We also lend for Self Invested Pension Scheme and Self Administered Pension Scheme purchases. For more information read our factsheet.
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 Commercial Mortgages from 5 to 25 years
- You can borrow any amount from £75,000 up to £10,000,000 maximum per portfolio.
- The LTV we work to is usually 75%
- Your interest rate will be linked to the Bank of England Base Rate, LIBOR*, or you can choose from a range of fixed rates (early repayment charges, an arrangement fee and other fees will usually apply)
- No compulsory insurance arrangements (fees and conditions apply)
- A period of interest only can be considered for a maximum of 60 months (at the end of this period capital will still need to be repaid).
- VAT bridging facility available for a period of 12 weeks on an interest only basis
- No need to transfer your business bank account
* 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.
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.
If the flat is more than 40% of the total area and 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 the flat is more than 40% of the total area and you or your immediate family plan to live in the flat, you may need to take out a Regulated Mortgage, in which case, unfortunately, we can't help you.
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.
Early repayment charges
You can pay off your mortgage early whenever you want, but you will usually have to pay an early repayment charge if you repay all or part of your mortgage within a specified period. Additional interest will be payable in the event of early redemption of the mortgage. Please contact Commercial Lending on 01733 372 425 to discuss what Early Repayment Charges are applicable to our products.
Fees and charges
For a full list of our mortgage charges and a description of when these may apply, you can download our guide to fees and charges here.
- Call our dedicated commercial mortgages team on 0333 414 1171.
- Norwich & Peterborough Building Society
Commercial Lending Department
Peterborough Business Park
Paperwork we'll need to see
- Fully completed application form.
- A full copy of the tenancy agreement(s).
- Evidence of your income (The last three years' audited or certified accounts if you're self employed or the last 3 months payslips and P60 if you're employed)
- Your last six months' business and personal bank statements.
- Details of your background and experience.
- Certified copy of ID (valid driving licence and/or passport).
This is not a comprehensive list of requirements and as such depending on the type of business borrowing you may be exempt from certain requests or be required to provide additional information.
Download Application form.