1.99%
As you'd expect, a commercial mortgage is a means to purchase a
business premises. This can include buying premises in order to
start up or expand a business, as well as purchasing a property
that is directly linked to the business, such as a hotel or shop.
However, a commercial mortgage can be subject to restrictions, such
as your ability to sublet your premises to other businesses.
Commercial Mortgages and Lenders
Most commercial mortgage lenders offer mortgages over a period
of 15 years or more. In order to obtain a commercial
mortgage, the lenders will usually stipulate a set of criteria that
needs to be met - commonly specifying that the borrower should have
a positive credit rating, as well as conclusive evidence that the
business is creditworthy. For those with a poor credit history,
there may still be some deals available, but these will likely to
be less competitive.
Although many bank and building societies offer commercial
mortgages, as specialist mortgage brokers, MortgageFinancialAdvisor
has access to the entire marketplace, and the most current offers.
And equipped with a complete and comprehensive knowledge of this
complex area, as experts we are best placed to advise and recommend
the most suitable deals to fit our individual clients and their
circumstances.
Finding the Best Commercial Mortgages
The more profitable and secure your business, the more likely it
is that your commercial mortgage application will prove successful.
The lender's decision will be dependent on a number of
factors that affect your ability to make repayments, such as your
long-term financial projections, business plans and credit history.
The more you are able to invest in the property from the outset,
generally the greater the chance that the lender will secure the
loan.
With a commercial mortgage, it's also quite common for lenders
to apply a loan-to-value ratio to the property, with an expectation
that the borrower will invest a proportion of their own money in
the purchase. The loan-to-value ratio is calculated as a
percentage, with the loan amount divided by the current market
value of the property.
The best commercial mortgages available to you will be dependent
on the state of your business, and other circumstances surrounding
your business finances. Finding the lending agreement that serves
your individual needs can be a difficult process - that's why we're
on hand to assist you in finding the very best deals for you and
your business.
For more information and independent, impartial recommendations
on commercial mortgage rates and deals, or to start your mortgage
application process, give MortgageFinanceAdvisor a call today.