Commercial mortgages require a specialist approach and are a complex area requiring expertise in that area of lending. There is a vast array of commercial mortgages available in the UK.
The balance between sourcing a safe and suitable commercial mortgage and one with the best available interest rate is to use a
commercial mortgage broker with years of commercial mortgage experience to guide you through the maze of commercial mortgage deals and to source the most competitive rate possible.
As commercial mortgages are a higher risk than residential loans, interest rates tend to be a little higher. Rates can however be as little as 1% above the Bank of England base rate and can either be fixed or variable. Variable rates usually change in line with the Bank of England base rate, while remaining a few percent higher while with fixed rate mortgage, repayments will remain the same for a set period.
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commercial mortgage lender will typically offer commercial mortgages on either a repayment or interest-only repayment basis. Interest-only commercial mortgages tend to be cheaper but require a significant repayment at the end of the commercial mortgage term.
In addition to interest, other costs may need to be taken into account when considering taking out a commercial mortgage for your business. Legal and professional fees as well as valuation fees should be understood before completing a commercial mortgage deal.
Our brokers will help you to find the best commercial mortgage deal for your business.
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