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.