FAQs
Are commercial mortgages beneficial?
When considering whether to apply for commercial mortgage for your business premises, it is always advisable to compare deals and weigh up the benefits.
In terms of the positives. If your property gains value, your equity will increase. You are secured from rising rental charges as you own the property.
- As long as you keep up with your payments, you are not at the risk of being kicked out of your business premises.
- The interest on your commercial mortgage may be tax-deductible.
How can I become eligible for commercial mortgages?
To be eligible for a commercial mortgage, you will need to meet the lender’s set criteria. This will vary not only based on the lender in question, but also on which type of commercial mortgage you are looking for. You will typically need:
- A minimum deposit worth 20% or more of the property you plan to buy
- To borrow a sum within the minimum and maximum borrowing amount as stated by the lender
- Meet the minimum and maximum age requirements of the lender.
- Prove that your business is profitable
- If applying for a commercial investment mortgage, prove your intended rental property will bring in enough income to cover the loan.
Are commercial mortgages cheaper than personal mortgages?
Senior property development loans are the largest aspect of development finance.
What does your development loan comparison table offer?
No! They are comparatively more expensive than personal mortgages. As there is a higher risk involved and has less market competition. Moreover, you would not be able to buy a commercial property with a standard residential mortgage.
Commercial mortgages typically come with a loan-to-value ratio of up to 80%. This means that you would need to have 20% or more of the value of the property you intend to buy as a deposit.
How do I compare commercial mortgages?
If you are ready to start comparing commercial mortgage rates, you can use our services or directly connect with our representative. It will show you the minimum turnover per year required by the lender, the available borrowing value, and the terms.
What is a semi-commercial mortgage?
A semi-commercial mortgage is used to buy a ‘mixed-use property. Any property that contains both commercial and residential spaces, such as a shop or pub with a flat above it.
