COMMERCIAL MORTGAGES
In simple terms, a commercial mortgage is the business form of a personal mortgage. The mortgage is a long-term loan taken by the business which is secured on a specific property or properties. With many different commercial mortgage lenders and literally hundreds of different commercial mortgage products, selecting the right one may seem confusing, but that’s where an experienced commercial finance broker can really help. Buying a commercial property for rental purposes or for your own business to trade from can be a sound investment, but as with all big decisions, it’s worth considering all the options before you jump in.
THE BENEFITS
- An investment into your future – if a mortgage payment is the same as your lease or you can earn more in rent than your mortgage (if renting the property) then you will repay the mortgage and at the end you will own the property outright.
- Much longer term than with other forms of finance meaning you can borrow a large sum whilst keeping monthly payments low.
- If borrowing on an existing unencumbered property, you can borrow significantly more than you would be able to without the property as security.