Refinance Options
It is easy to to be spoilt for choice when searching for a mortgage on your main residence as there are multiple lenders offering hundreds of competitively priced deals, however, when it comes to commercial property, mortgages are bespoke so it is harder to compare deals in the search for the most suitable loan for your circumstances.
A commercial mortgage is often the best and most flexible way to finance the purchase of a business. Unlike residential mortgages, commercial loans can be used for a variety of purposes, including purchasing business premises; expanding; residential and commercial investment; and property development.
Understanding Commercial Mortgages
There are two main types of commercial mortgage:Owner Occupier and Commercial Investment
With owner occupier, pricing models can be complex and are lenders will consider a number of factors such as :
- 1. The Security Available (lower advances are usually offered on leasehold premises
- 2. Historical/Financial Projections
- 3. Clients experience
- 4. Business type and sector
The commercial investment funding market varies further with the 'Loan to Value' ratio being determined by:
- 1. Trade Sector
- 2. Length of the Lease
- 3. Perceived financial standing of the tenant
- 4. Rental to Debt servicing coverage
- 5. Underlying vacant possession value
Given the bespoke and complex nature of commercial mortgages, using a intermediary such as Business Assistance, will be able to advise on what can be achieved in the market at the present time, and the most appropriate lenders to achieve this. Whether you are starting a business, or buying an existing one, or want bigger premises to expand your existing business, we have expertise in this area so should be able to find you flexible terms at a competitive price.
Our skills and expertise are particuarly valuable: we have close relationships with specialist lenders and the knowledge to required to make transactions work smoothly and cost-effectively.
We also manage the entire process from from initial discussions with lenders to valuation, loan approval and draw down. The net result is an efficient, professional service, whether you are looking for funding for purchases, refinancing, expansion or development.
Back to: Property Finance
Business Assistance is accredited by the National Association of Commercial Finance Brokers.