Norwich & Peterborough provides commercial mortgages for the purchase of established businesses (often referred to as 'going-concerns').
We lend to purchasers of established businesses that have a proven, profitable track record. The purchasers must be suitably qualified and experienced in that business. We will need the last three years' audited or certified accounts for the business to be purchased.
If only two years of finalised accounts are available we may still decide to lend but subject to a higher rate of interest. The rate will be reviewed once the third year of accounts are available.
All loans are subject to status and secured against business property. Sometimes, other additional security may be required.
We regret that we are unable to lend funds to finance the start up of a new business.
- 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 up to 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 (conditions apply)
- 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.
We would consider such a proposition.
We do require applicants to have suitable experience when purchasing a going concern business such as a care home. In addition to nursing experience, we would need evidence that you or perhaps a partner, have a suitable background in running a business. Each application is assessed on an individual basis and we meet most of the people we lend to in order to discuss and assess their particular experience and circumstances.
It all depends on the type of business you are buying.
For example; when the purchase is of a business such as a hotel, childrens day nursery or care home, we can lend up to 75% of the trading value of the business.
Give us a call on 01733 372378 to discuss your particular case.
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.
- The last three years' audited or certified accounts of the subject business and any other business that you run. (If only two years' accounts are available we will consider your application but you may have to pay a higher rate).
- 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.