Funds raised through a commercial mortgage can be used for a variety of purposes such as buying your business premises, purchasing the whole of an established business or unlocking some of the capital tied up in the premises to perhaps carry out an extensive marketing campaign or invest in new plant and machinery.
There is a minimum mortgage amount of £25,000 but no maximum figure so it should not be a problem in catering for your funding needs as long as the underwriting requirements can be met when applying for a business mortgage.
The repayment term with commercial mortgages can be anything from as little as 2 years up to a maximum of 30 years. This helps tailor a repayment package that your business finds very affordable and in line with the “lifespan” of what the funds are being used for. Business mortgage repayments can either be on a capital and interest repayment basis or interest only with interest being payable monthly or quarterly.
The interest rate on business mortgages can be variable or fixed and is calculated based upon the business’s perceived risk to the lender. The rate can be linked to the Bank of England base rate or Libor.
The maximum loan to valuation is normally up to 80% but could be higher in certain situations.
Security for business mortgages usually comprises of a minimum of a mortgage over the business premises.
As you can see, there is a significant amount of flexibility with commercial mortgages meaning that you are likely to find one that meets the requirements of your business.
We look forward to being of assistance in your search for a commercial mortgage.