Commercial Mortgages
Commercial mortgages or business mortgages are mortgage loans that are taken out, not for the purchasing of a residential property, but for a building that is to be used for business or commercial purposes. In certain circumstances where the business and property may be linked and therefore sold together, such as a pub or a restaurant, commercial mortgage loans are usually used.
As with residential mortgages the loan amount will need to be repaid within an agreed period and interest will be charged on the outstanding amount.
Normally, an arrangement fee of around 2% of the mortgage will be charged and a guarantee for the commercial mortgage will need to be established. This could be the commercial property itself, or another business asset.
The arrangement of a business mortgage can sometimes be used to help to fund further business activities and land investment finance amongst other things.
Usually commercial mortgage rates are lower than residential interest rates because with a thriving business the risk associated with the mortgage loan is lower.
HRP Finance will be able to help guide through the best options available to you for commercial and business mortgages being able to look at 1000's of mortgage products within the UK marketplace.
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