What is a Commercial Mortgage?
They are generally used to develop existing businesses by increasing factory or office floor space. They can also be used to buy a business or invest in land that is used commercially.
Commercial Mortgages are undertaken so that a company may do the following:
They are available for almost any kind of business requirement or property type – typical examples would be pubs and restaurants where the whole operation including the building is sold together.
However a commercial mortgage could be used to buy units within a retail park to allow further business expansion. Appreciation of these property values is often forthcoming, making them very attractive long term investments.
Rates tend to be slightly lower than residential mortgages and over a longer term - they are also often fixed, proving attractive to a lot of businesses who like to know how much money will go out every month. Getting 100% of the purchase value is possible provided there is extra security. Credit history problems may be taken into account – all circumstances will be considered.
