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Mortgage Glossary
Commercial Mortgages
 
Are you a busy business owner looking for a loan to buy property, or to extend your existing business?
Do you want a fashioned and flexible way for managing your mortgage loan?
Then the commercial property loan is especially for you!

What are the key features of a Commercial Mortgage? It is a secured loan against a commercial property such as a factory, a shop, a business centre, a warehouse, a garage or a multi-storey car park, a hospital or a school. Similarly to a usual option the commercial lender will have ownership of the title records which contain a reference of the property as security. So in case terms and conditions are not kept by the borrower, the lender can regain possession of the commercial property. Business owners who want to fund their own buildings might have a special Commercial Mortgage called ‘Owner Occupied Mortgage’.

Why is a Commercial Mortgage good for you? First, you can use such a loan for expanding your existing company. Second, you can have a fresh start as well, making a new business project. So a Commercial Mortgage will be useful for you if you are a businessman not having enough sources to buy a property for your enterprise. No matter if you intend to purchase a new office building, or a multiple hotel, feel free to contact a Commercial Mortgage provider! They surely can provide you with the money you need. Don’t forget that it is essential for your business to expand rapidly!
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What kinds of Commercial Mortgages are present on the market? There is a wide range of offers, so you can choose the one that fits you the best. There are many available products that you can use for purchasing business or shopping centres, industrial and office buildings, hotels, motels, summer resorts or chain of hotels, but also for ground lease purposes or for construction loans. Note that the type of loan you want to choose and the purposes of taking out the loan is essential information for a Commercial Mortgage.

Let’s move on and talk about the benefits. It is a quite simple and quick arrangement which is easy to manage. More than that, it is very flexible so you can personalize and frame it to your needs. This involves choosing a repayment period (with a time range between 2 and 30 years), and also the amount that you borrow, which should be more than £25,000, but there is no maximum limit of it! And if your loan is over £250,000, you are guaranteed to escape from the interest rate increases! Isn’t it great? Moreover, you can make your deal quite favourable, as there is a possibility of borrowing even 75% of the property value! You are also accepted to delay with your repayments twice in a year. Next, you can also select such an interest rate type and payment frequency that is the most appropriate for you. So you can combine for instance a fixed rate mortgage with quarterly repayments, or a variable rate mortgage with monthly payments. Finally, you may also want to delay with the capital repayment. This is also possible with a Commercial Mortgage in the first 2 years!

Finally, you can find here some useful tips to be taken into consideration! You know by now that the property you buy with your Commercial Mortgage will be the collateral from the lender’s point of view. So you should be very careful to comply with your mortgage repayments, otherwise the lender can foreclose the mortgage so your commercial property may be confiscated. Although in the first two years you have the chance to miss two repayments per year, you should be very cautious after this period! So prior to making any deal you should look around carefully and make researches on the mortgage product you want to choose. You may use the internet; or you may ask an experienced advisor or a Commercial Mortgage broker to help you choose the best existing offer. They will take into consideration your personal requirements as well as your financial circumstances. This way you can save time which is essential for you as a business owner.

All in all, you are advised to consider the option of choosing a Commercial Mortgage for various purposes: either for buying office space, factories, and hotels or for buying grounds or buildings to lease them out in the near-future. Note that buying a commercial property by businessmen has become very popular as there are various types to choose from and these loans can easily be obtained. You can have a loan with various amounts, repayment terms and interest rates. But be very careful and open-eyed when choosing the lending company, put forward your loan requirements, and make sure you accept the best existing offer! Analyse all the aspects of your loan and make sure the Commercial Mortgage lending company you choose is insured! Don’t forget that all this is about a very large investment! So choose a mortgage with low interest rates and a repayment time that is suitable for you.