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Commercial

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Commercial Mortgage or Loan

A commercial mortgage is probably the best way to finance the purchase of land and/or buildings for your business. A Commercial Mortgage is a specialised commercial loan that will provide a very flexible and affordable financing solution for your business needs.  Before taking out a Commercial Loan or Mortgage you may wish to consult your accountant and/or Tax advisers.

 

How It Works

Similar to Residential Mortgages, the three most important aspects to consider are the interest rate, Interest type and the term for the mortgage.

 

Advantages of a Commercial Mortgage

          Will not need to raise funds by selling interest in an existing property to an outside investor.

          Your property should appreciate in value.

          A Commercial Mortgage may aid your cash flow.

          Tax advantage. Interest payments on your mortgage are tax deductible and are made with pre-tax money. In contrast purchases made from the proceeds of profit, are, made with after-tax money.

          Potential to Sub-Let.

 

Disadvantages of a Commercial Mortgage

          Requires you to pledge the purchased property to the lender. If you default on the mortgage Defaults.

          Failure to make any payment on time could result in bankruptcy

 

 

Frequently Asked Questions (FAQs)

          Should I purchase property instead of letting?

          What is the usual length of a mortgage?

          How much cash do I need for a deposit?

          How should the mortgage be structured?

          How can I improve my chances of getting a mortgage?

          Who is responsible for the repayment of the mortgage?

Commercial Mortgages are not currently regulated by the Financial Conduct Authority.