Commercial Mortgages
A commercial mortgage is a loan that is secured against a commercial property, such as an office building, warehouse, retail space, or apartment complex. Commercial mortgages are typically used by businesses to purchase or refinance properties that are used for commercial purposes, such as to generate income or as a base of operations.
The terms of a commercial mortgage are generally based on the creditworthiness of the borrower and the value of the property being financed. The loan is usually repaid over a period of 10 to 25 years and may be structured as a fixed or variable interest rate.
Commercial mortgages can be a useful tool for businesses that need to acquire or refinance property, but it is important to carefully consider the costs and risks involved – this is where GoFinance can help you, our experts will work with you to:
- Assess your financial situation
- Advise on loan options
- Compare lenders
- Negotiate terms
- Prepare application
- Provide ongoing support
Types of Commercial Mortgage
A fixed-rate commercial mortgage has a fixed interest rate for the duration of the loan, providing borrowers with certainty over their monthly repayments.
A variable-rate commercial mortgage has an interest rate that can change over the life of the loan, typically in line with market interest rates. This can provide borrowers with lower initial interest rates but with less certainty over future repayments.
These are used to purchase commercial properties that are rented out to tenants. They are typically structured similarly to residential buy-to-let mortgages.
Bridging finance is a short-term loan that is used to bridge the gap between the purchase of a property and the sale of another property, typically used for commercial properties purchased at auction.
Development finance is used to finance the construction or redevelopment of a commercial property, providing funding for costs such as land acquisition, planning permission, and building materials.
Secured loans are loans that are secured against a commercial property or other assets owned by the borrower. They can be used for a variety of purposes, such as funding a business expansion or paying off other debts.