A commercial mortgage is an agreement whereby a loan is secured on a commercial property such as a shop, restaurant, warehouse, factory or school. In most cases, commercial mortgage lenders will require you to have a good credit rating, and will also require you to invest a certain amount yourself, in the form of an initial deposit. As with residential mortgages, commercial lenders will apply a loan-to-value ratio on your mortgage, and will usually allow you to borrow up to 80% of the value of the property, as long as you meet their lending criteria. As you would expect, the success and stability of your business will play a part in whether your commercial mortgage application is successful, since the lender will want to ensure that they are not investing in a high-risk proposition.
If you would like to obtain a mortgage to purchase a commercial property, you need to take into consideration the projected growth of the company over the term of the commercial mortgage; will your chosen premises allow for expansion? You will also need to decide very carefully which type of mortgage you need, because a fluctuating rate of repayment could impact negatively on your company’s finances. We would highly recommend that you speak to a qualified commercial mortgage specialist, to ensure that you choose the most suitable lender for your company’s needs. Click on the link below to find an experienced commercial mortgage adviser and get advice today.