HomeFWJ TakeawayBusiness fundingGetting or giving securityWhat is a business mortgage?

A business mortgage, also known as a commercial mortgage or commercial property mortgage, is usually taken over the commercial premises owned by the business taking the loan or finance.

  • when you enter into a business or commercial mortgage there will be various paperwork for you to sign, including a loan agreement or finance agreement and the mortgage document;
  • a commercial mortgage is often taken when a business is borrowing money in order to buy a property or using a property it already owns as collateral;
  • the loan agreement will outline the commercial terms and conditions of the lending;
  • the commercial mortgage provides that the title to the commercial property is owned by the lender until the obligations under the commercial loan agreement have been fulfilled. The lender becomes the mortgagee.

If there is default under the commercial finance agreement, then the commercial mortgage can be enforced and the property sold or otherwise dealt with by the lender.


If you are lending or borrowing money, the commercial finance team at Francis Wilks & Jones can take you through the process, making life easier. From negotiation and preparation of the business loan to registration of the business mortgage, we are here to help.

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