An overview of the commercial mortgage
You may need to take out a commercial mortgage to buy premises to start or expand your business, or if you are buying a business that is directly linked to property, eg a hotel or retail outlet. Mortgages are usually for 15 years or more and the property itself is at risk if payments are not made on time.
Meeting the lenders' criteria
Most banks and building societies offer commercial mortgages, but you must satisfy the lenders' criteria. Some lenders may accept applications where there is an adverse credit history, but most require a positive personal credit rating and clear evidence that your business is creditworthy. Most will apply a loan-to-value ratio and will expect you to invest a proportion of your own money in the purchase. The more you are willing to invest of your own money, the greater the chance you will have of securing a loan for the remainder.
The lender's decision will also depend on your current business circumstances - a commercial lender will expect your business to be stable and profitable. They may ask to see your business plan and long-term financial projections, to assure themselves that your business has, and will continue to have, the ability to make repayments on the loan. For further information please call us on Freephone 0800 612 5094 or complete our on-line enquiry form so we can assess your exact needs and help match them to a suitable lender.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. There may be fee charged for mortgage advice. The precise amount will depend upon your circumstances but the maximum fee would be 1.5% of the loan value. Some mortgage and insurance products are not regulated by the FSA.
FreshMortgage.net is a trading name of MDSW Mortgage Consultants who are an appointed representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London, W11 7RJ which is authorised and regulated by the Financial Services Authority no. 303007.