Commercial Remortgage Advice
What is a commercial mortgage?
When setting up or expanding a business, a commercial mortgage is usually necessary to buy your business premises. Commercial mortgages are usually offered as more short term compared with residential mortgages, usually for approximately 15 years. Commercial mortgages may carry a higher rate of interest than a residential mortgage because you are considered a higher risk.
Please note that as with residential mortagages your business premises will be at risk if mortgage repayments are not made. The lender of a commercial mortgage holds a legal claim over the property until the repayment amount has been made in full.
During the commercial mortgage application process the lender will investigate many factors specific to your property type. For example if you would like to buy a hotel the lender will look at the location of the property and its transport links (factors likely to affect the success of tourism businesses).
Examples: Types of commercial mortgages offered by lenders:
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Offices
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Hotels
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Rest homes
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B & B’s
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Surgeries
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Retail
Why should I get a commercial remortgage?
By switching your mortgage to another lender you could receive many benefits. The advantages and disadvantages of a commercial remortgage are similar to that of a residential remortgage.
Please read the following advice on the Pros and Cons of Commercial Remortgaging:
Pros |
Cons |
You can use the extra capital to expand your business or improve your property. |
There may be early repayment charges and reservation fees demanded by your old and new lenders. |
Raise working capital. |
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Can reduce the amount of interest you pay. |
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Consolidate your business debts. |
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If you have decided that a commercial remortgage is for you, then please read on.
Will my commercial remortgage application be successful?
During the application process the lender will consider many aspects of your existing business including your short and long-term business plans. In order to be accepted for a commercial remortgage you will need to satisfy criteria set by the lender. To satisfy a lender for a commercial remortgage you will need to prove that your business is stable and profitable. Self-certification is usually offered with this type of mortgage as it may be difficult for business owners to prove a fixed income on paper. Criteria’s vary between lenders however if you have bad credit make sure that you apply to a lender that specifically deals in this area as they will be more likely to accept your application. Application rejections may do further harm to a bad credit history however please note that getting quotes will not affect your credit in any way and it is certainly best to shop around when searching for lenders.
Get a No Obligation Quote from a Commerical Remortgage specialist:
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Fill out the simple – no obligation form
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Wait for qualified advisors to get in touch and discuss your personal circumstances.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The actual rate will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The fee will normally be 2% of the mortgage advance, minimum of £950 and a maximum of £3000.The fee can usually be added to the mortgage amount.
Enable Finance Ltd. is authorised and regulated by the Financial Services Authority for mortgages and non-investment insurance. Buy-to-Let mortgages are not normally regulated by the Financial Services Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE