Commercial mortgage brokers in Dundee
We do not currently list a Dundee broker who has told us they specialise in commercial mortgage cases. The guidance below still applies, and the brokers listed for Dundee can usually help or refer you on.
Commercial mortgages in Dundee: what to know
Commercial mortgages cover premises used for business — shops, offices, industrial units, and mixed-use buildings with a residential element above. Unlike residential lending there is very little standardised pricing: terms are negotiated case by case on the strength of the business, the asset and the covenant. Deposits of 25–40% are typical. For Dundee businesses, a broker with genuine commercial lender relationships matters far more than it does on a straightforward residential case.
- Pricing is individually negotiated. Two businesses buying similar units can be quoted materially different rates depending on trading history and sector.
- Lenders will want two to three years of accounts, and usually projections. Newer businesses can still borrow but should expect a larger deposit and possibly personal guarantees.
- Owner-occupier cases (you trade from the property) are generally viewed more favourably than commercial investment where you are letting to a third party.
- Semi-commercial and mixed-use properties fall between residential and commercial criteria, and are a common source of declines when placed with the wrong lender.
What matters locally in Dundee
Broughty Ferry is the established higher-value district, with period villas and a strong family market. The West End and Perth Road corridor hold tenement flats and larger period houses close to the universities and hospital, sustaining a substantial student and NHS-staff rental market. North and north-west Dundee, including Lochee and Kirkton, is considerably more affordable and contains a good deal of ex-local-authority housing. City-centre and waterfront flats add a smaller leasehold-style apartment stock, though in Scotland flats are owned outright with shared common repair liability rather than on a lease.
- Ex-local-authority and non-standard-construction property, where some lenders decline particular building types outright.
- Tenement flats with shared roof and close repair responsibilities, which the Home Report will normally identify before you offer.
Do lenders treat Scottish flats differently from English ones?
Yes, in one important respect: Scottish flats are not leasehold. You own the property outright and share responsibility for the roof, stair and other common parts with the neighbouring owners, usually managed by a factor. That removes the lease-length problem that affects English flats, but it makes the condition of the common parts and any outstanding repair scheme a live mortgage issue.
Questions worth asking a commercial broker
- What deposit do I need for a commercial mortgage in Dundee?
- Typically 25% to 40% of the purchase price. Owner-occupiers with strong trading accounts sit at the lower end; investment purchases and less established businesses at the higher end.
- How long do commercial mortgage terms run?
- Commonly 15 to 25 years, though shorter terms of five to ten years are frequent for investment cases. Rates are more often variable or linked to a reference rate than fixed for long periods.
- Will I need to give a personal guarantee?
- Frequently, yes — particularly for limited-company borrowing or newer businesses. The guarantee may be capped at a proportion of the loan, and that cap is usually negotiable.
- Can I get a commercial mortgage for a business I am buying?
- Yes, though lenders will underwrite the business you are acquiring as well as the property. Sectors such as hospitality and care are treated as specialist and have a narrower lender pool.