Commercial mortgage

Common applications of commercial mortgage loans include acquiring land or commercial properties, expanding existing facilities or refinancing existing debt.

Commercial premises are purchased for many reasons. One may require bigger premises to cope with expansion, or you may be buying property, whereby the property is directly linked to a business e.g. a hotel. Commercial Mortgages are usually for over 15 years, and may be much longer than this. The Property itself is at risk if payments are not made on time.

Commercial Mortgages are often used for a variety of purposes:

• To purchase the premises of the business.
• For the extension of existing premises.
• Residential and commercial investment.
• Developing the property in other manners.

Interest rates for commercial mortgages are usually higher than those for residential mortgages because of the risks associated with the start up of a business and the cost of selling such property if the business fails. A commercial mortgage can cover the expense of other things as well as property. It can help pay for equipment needed. It can finance cars light commercial vehicles heavy good vehicles all forms of business plant and machinery. Another way to buy such is by the use of hire purchase this works if you don’t want to commit large amounts of cash and can use the income generated from these business assets to repay the loan over one to five years.

If you are considering becoming a commercial landlord there are banks that deal with just this that have loans tailored for the buy to let or commercial owner occupier mortgage or maybe you are looking for help for a commercial investment mortgage all these things can be catered for by lenders that are well aware of all the risks. Some offer free ongoing day to day banking for the first two years to help you get up and running.

They can also help with bridging loans whilst you move sell one property or whilst you are transferring from one business premises to another. Sometimes you need to keep your old premises up and running whilst setting up your new bigger premises with all the problems this entails.

commercial owner occupier mortgages and commercial investment mortgages on a self cert basis for start up businesses or where the business does not yet have profitable accounts in the UK can be organised.

where there is an adverse credit history, no proof of income, defaults, IVA or previous bankruptcy it is not impossible to get a mortgage even in these cases without high broker fees.