Commercial Mortgages

We provide some of the very best commercial mortgages on the market, the purpose of this page is to provide you with some of the information in relation to how we do this!

Please feel free to visit our website at www.commercial-mortgages-broker.co.uk

There are lots of different ways of financing your company through its acquisitions, here we will discuss the commercial mortgages options available and how a commercial mortgage broker may be able to help your company. In principal a commercial mortgage works in a similar way to a residential mortgage, throughout the process however, there are some further factors which you should consider.

One of the major factors which companies need to consider when investing in commercial property is the ability to realise the value which is tied up in the investment. Commercial properties are generally considered to be significantly less liquid than residential properties. i.e. There are fewer potential buyers on the market than you would experience in the residential marketplace.

In addition, the typical terms of the mortgage will be different in a number of ways, and this is noted particularly in relation to the term of the mortgage, which may have much wider variables than a residential property with commercial mortgage lenders, typically offering terms between 2-30 years. 

When businesses are looking to purchase a commercial property with a commercial property mortgage, the lender will look at a variety of different things, these include:

How long your business has operating.

The value of your business.

How your business has been performing in recent months and years as opposed to previous performance.

How much debt you have outstanding, against what assets and what your payment profile has been.

If your business is considering purchasing an investment property, i.e. a commercial premises which you intend to rent to another company or business, this will normally add some further questions to the proposal which you make to the lender:

- What the expected income from the property will be.

- What types of business are renting from you, are the well established and likely to be around for the longer term.

- How long are they considering renting the premises for. The longer the better.

- The lenders will expect that you will be making some money from the property over and above the interest payments, how much will you be making? What happens if you do not have a tenant in the property, will your business be able to meet the payments for a period of time?

The types of fees which commercial lenders will charge will normally be higher than for a residential mortgage, these will normally be around 0.5% - 1%.

It is certainly possible to make substantial money from investment through commercial property, however, you should consider these areas as a complete minimum before you get started.

Do please remember that when presenting your case to a lender the more information which you are able to provide the better, therefore we would always recommend pulling together a full "proposal" which we would then distribute through to our panel of lenders. 

For further information and the very best commercial property deals, please visit http://www.commercial-mortgages-broker.co.uk