Commercial Mortgages Explained

Commercial Mortgages Explained



Commercial Mortgages Explained
If you​ are thinking of​ buying a​ commercial property either to​ use as​ a​ business venture or​ to​ sell on​ as​ an​ investment then you​ are going to​ need a​ commercial mortgage .​
Just as​ there are many different types of​ property available for all types of​ business ventures there are different types of​ commercial mortgage.
The type of​ commercial mortgage you​ will get will depend on​ the​ type of​ business which you​ are intending to​ set up,​ for example solicitors,​ doctors,​ vets and such would more than likely be able to​ get a​ 100% commercial mortgage for their business .​
This is​ because these are generally classed as​ professional businesses while others are generally seen as​ non professional.
A 100% mortgage will use the​ property that you​ are intending to​ purchase instead of​ asking you​ to​ pay a​ deposit .​
However when going for a​ 100% commercial mortgage there may be other fees included which you​ will have to​ pay out for and these include valuation fees and legal fees,​ however in​ the​ majority of​ cases these fees can be added onto the​ mortgage providing of​ course there is​ enough security in​ the​ property you​ are intending to​ purchase .​
However in​ the​ majority of​ cases the​ lender will offer a​ mortgage of​ between 70% and 80% of​ the​ total value of​ the​ property which you​ are intending to​ purchase .​
This means that you​ will have to​ find the​ rest of​ the​ money yourself,​ of​ course this could leave you​ with a​ substantial amount of​ money to​ find towards the​ property and this should be taken into account when going for the​ mortgage.
Ways that you​ can get this money include asking for a​ business overdraft,​ releasing equity,​ using 50% of​ the​ total value of​ your pension fund towards the​ cost or​ handing over a​ share of​ the​ business in​ return for financing .​
Depending on​ your knowledge of​ financial matters it​ could be in​ your best interests to​ talk with a​ financial advisor before committing your self to​ a​ commercial loan .​
Searching online for information and providers which offer commercial loans is​ the​ best way to​ go when looking for a​ loan of​ this type .​
Not only can you​ get the​ right information but you​ can also fill in​ an​ online form which will give you​ a​ quote for the​ loan .​
This way you​ are able to​ compare and shop around for the​ best deal possible on​ your commercial loan.




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