Commercial Mortgage
A Commercial Mortgage is a loan designed to buy or refinance commercial properties. It offers repayment options tailored to your business requirements.
Key Features:
✅ Repayment Terms – Borrow for up to 25 years, depending on your circumstances.
✅ Interest Rates – Your rate depends on financial factors and market conditions.
✅ Variable Rate Option – If you choose a variable rate, your interest will follow the lender’s base rate.
✅ Repayment Choices – Select Capital & Interest or Straight Line repayments to suit your cash flow.
✅ Capital Repayment Holiday – Eligible borrowers may request a period where only interest payments apply (subject to approval and conditions).
✅ Fees & Charges – Arrangement and security fees may apply based on loan terms.
A Commercial Mortgage allows businesses to invest in property while keeping repayment terms flexible. Contact us today to discuss your options and find a suitable solution for your business.
Understanding How Commercial Mortgage Work
A commercial mortgage is a type of loan secured against a property used for business purposes. Whether you’re purchasing premises for your own company or investing in commercial property, understanding how these mortgages work is essential.
How Are They Different from Residential Mortgages?
While commercial mortgages share some similarities with residential loans, there are key differences:
- Higher Interest Rates – Lenders consider commercial mortgages riskier, which often results in slightly higher interest rates than residential loans.
- Affordability Assessment – For owner-occupied properties, affordability is based on the business’s financial health rather than an individual’s income. For investment properties, lenders assess rental income potential.
- Business Use Requirement – These loans are designed for properties that businesses operate from or are rented out for commercial purposes.
Types of Commercial Mortgages and Their Uses
Business Loans
Designed for business owners purchasing or refinancing property for operational use. Suitable for companies looking to acquire office space, retail units, or warehouses.
Short-Term Bridge Loans
Ideal for investors or businesses needing quick capital to secure a property before securing long-term financing. Bridge loans provide short-term funding for urgent purchases or refurbishments.
Development Finance
For property developers constructing new buildings or renovating existing structures. Development finance is crucial for large-scale projects, covering land acquisition and construction costs.
Owner-Occupied Commercial
If you plan to use the property for your own business operations, this type of mortgage is suitable. It allows business owners to build equity rather than rent commercial space.
Investment Property Commercial Mortgages
For landlords and investors purchasing commercial property to rent out. Common examples include office spaces, industrial units, and retail premises.
Find the Right Commercial Mortgage Adviser
Finding the right mortgage adviser can be challenging, especially when your needs are specific. Expert advice is crucial whether you’re a first-time business owner, an experienced investor, or require specialist financing for a large-scale project.
This is where Connect Experts helps. Instead of browsing through countless brokers, our platform lets you find a mortgage adviser based on expertise, location, language, and even gender—ensuring you receive tailored advice for your commercial mortgage needs.
Avoid time-consuming, generic recommendations. Find the right commercial mortgage expert today and take the next step towards securing the best deal for your investment.
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