What is a commercial property mortgage?
A commercial property mortgage is a long-term property loan, providing your business with the necessary funding to purchase or refinance commercial property. Repayments on the mortgage are typically paid monthly at a fixed or variable rate, depending upon which option meets your business’ property finance needs.
Commercial mortgage rates will typically vary according to your business and the selected mortgage lender, so specialist commercial finance brokers excel at identifying the best mortgage rate that meets your cash flow requirements.
What are the benefits of a commercial property mortgage?
- A commercial property mortgage maintains your business’ cash flow and provides the necessary working capital to invest in funding growth and expansion.
- Commercial property mortgage solutions are ideal if you are looking to buy new premises for your business, or are looking to extend or develop your property.
- With an often flexible repayment period, a commercial property mortgage makes it possible to borrow up to 70% of the purchase price or the professional valuation, providing a viable alternative to leasing.
- Your business will own the property outright, giving you the option to develop and decorate it as you please, subject to planning permission.
- Remortgaging allows you to take advantage of better commercial mortgage rates on the market to release even more capital and reduce overheads.
- Depending on your business’ property finance requirements, the repayment structure on your commercial property mortgage could operate at a fixed rate, assisting your cash flow management, or at a variable rate, fluctuating in accordance with the Bank of England base rate or LIBOR.
- Specialist lenders understand your business’ property finance needs and may ultimately offer you more tailored commercial mortgage rates than a high street bank or a building society.
- It may sometimes be possible to obtain a commercial property mortgage despite an unfavourable credit history.
Is a commercial property mortgage suitable for my business?
The business property finance market has developed to offer a number of solutions from a range of providers over the past few years, including high street banks, building societies and independent mortgage lenders. It is worth considering all the options available to your business and seeking insight from a commercial finance broker before you secure or change your commercial property mortgage.
Commercial property mortgages provide cash to help your company fund a property purchase. The mortgage lender forwards up to 70% of the property’s valuation in return for regular payments at a fixed or variable rate, giving you outright ownership of the premises and leaving you with the working capital to fund any further property investment.
Recent changes in the market could mean your existing mortgage may no longer offer the best commercial mortgage rate available to your business. Remortgaging will free up working capital to boost your business’ cash flow in addition to reducing overheads.
Hilton-Baird Financial Solutions is proven at identifying the best commercial mortgage rates in the UK to meet the funding needs of any business. As the leading independent commercial finance broker in the UK, we provide support throughout the entire process.
Please call Neil Galer on 023 8070 6636 or email neil.galer@hiltonbaird.co.uk to find out more about the commercial property mortgage options available to your business. Alternatively, you can get a commercial mortgage quote in three easy steps.
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