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There are a variety of different forms of
commercial mortgage depending on your needs and
plans. Commercial mortgages are generally misconstrued
as similar to consumer mortgages but in reality
they are far more flexible and can be used for
a variety of purposes. Own Use Commercial Mortgages
The most common form of commercial mortgage.
You may have premises you want to but rather than
let or you may want to mortgage owned property
to provide a cash injection to expand. Business
loans and commercial mortgage are very similar
in that the bank will lend money based upon some
form of asset such as property. Lenders will look
at the value of the property used as collateral
and both the operating and credit history of the
business to determine how much money they are
willing to extend to a business.
Apply to Adept Finance for a commercial mortgage
Commercial Investment Mortgages
Commercial investment mortgages are loans to
purchase commercial property (for example, office
space or a warehouse) in order to rent it out
to business tenants. These types of mortgages
are different from owner-occupied mortgages where
a business borrows money against property they
are currently occupying and operating their own
business from. For commercial investment mortgages,
lenders normally focus on the quality of the tenants
in a property and the type of tenancy agreement
in place as well as credit history of the actual
borrower.
Development mortgages are a specialised subcategory
of commercial investment mortgages. Development
mortgages are given to businesses who have purchased
land and are planning to build commercial property
on that land or have purchased a dilapidated building
in order to refurbish it for other purposes. Lenders
will usually provide short-term loans (less than
3 years) to help finance the project. Since these
projects tend to be high risk, lenders will provide
a conservative amount of financing. You can expect
to borrow up to 70% of the value of the land and
70% of the cost of the project.
Apply to Adept Finance
for a commercial investment mortgage
Buy To Let Mortgages
Not strictly a commercial mortgage, as most investors
are private individuals who have created a limited
company to operate the investment. Buy to let
mortgages are seen by many as an alternative to
a pension but the allure of the buy to let option
has jaded of late as interest
rates begin to turn
and the market shrinks due to less demand for
rental property and increased volume of new property
being released.
However, the price of property in places such
as London has virtually doubled in the last three
years returning a phenomenal return on investment
while the property market is more robust in the
face of a general economic down turn.
Getting a buy to let mortgage is with an adverse
credit rating is possible but expect to be charged
a far larger interest
rate while in addition placing
a higher deposit on the property.
Apply to Adept Finance
for a Buy to Let mortgage
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