Hey listen to this....Don't tell everyone but we have a little secret to tell you!
"How to get a Commercial mortgage"...
...The first thing to decide is what constitutes a commercial mortgage?
We could probably write a book on this topic and for the sake of your time and ours here are some brief pointers.
Commercial mortgages can be arranged for almost any business property asset and include;
- Prime office/retail
- Secondary office/retail
- Industrial
- Warehouses/retail park
- Multi occupancy serviced offices
- Mixed commercial & residential
- Hotels
- Public houses
- Guest houses
- Restaurants
- Nursing homes
- Day nursery
- Doctors/Dentists/Vets
- Post office
- Leisure
- Agricultural
- Property development & refurbishment
What kind of problems are you likely to come across?
As with any other type of borrowing, lenders will need to be happy that you can meet the payments and will be interested in a number of factors.
They will normally want to see the last 3 years accounts and will also be looking at your personal credit history;
- How much deposit you can put down
- The size of the loan
- Type of security offered
- Risk associated with your type of business
- Your experience in this business
- Cash flow forecasts
- Business plan
This may make it seem complicated and onorous but to be fair to the lenders, the amounts involved may be quite high so most of these things are quite practical.
Be aware of your risk
"The Financial Services Authority does not regulate some forms of buy to lets and commercial mortgages”
How much can I borrow?...
In most cases a commercial mortgage can be as high as 85% loan to value. If you have very good security available then sometimes you could get as much as 100%.
Fees
"Our charges are usually £500 (residential mortgage) or 1% of the loan for other mortgages".
Example; A £100,000 non residential mortgage would be £1000 of fees.
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Tough decisions
There are some proposals that lenders don't really like and will normally stay away from. For example leasehold premises are not attractive unless it is a very low loan to value.The next step...
Give me a call (Steve Prior +44 (0) 1793 346 823) and make sure you have printed and read the free report. Get it here...
