first direct
1.99%
Santander
2.19%
HSBC Bank
2.29%
Natwest
2.39%
ING Direct
2.49%
Market Harborough BS
2.75%
National Counties BS
2.99%
Principality BS
3.29%

FSA ApprovedFSB MemberTGK Approved

Commercial Mortgage

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.