Commercial Mortgages

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Commercial Mortgages

Pros and cons | Apply for mortgage | Alternatives

Hunter Finance do not offer traditional commercial mortgages. Instead we offer short term property loans for full commercial, semi-commercial or residential buildings.

Commercial Mortgages: Broker Fees

A commercial mortgage is mainly for a business owner who is looking to buy either land or property.

It is a type of loan that is secured against the property you are looking to buy but don’t yet own.

Mortgages for commercial premises are used for either a purchase or refinance for buildings such as factories, offices, retail and hospitality buildings, or warehouses.

Hunter Finance specialises in providing property development finance solutions to individual and commercial investors.

Call us today to discuss your eligibility for a loan: 01825 749 721.

There are two types of business mortgages:

Owner-occupier mortgages: Buying property that will be used as a trading premise for your company
Commercial investment leases: Buying a property that you intend to let out

These kinds of investments can be used in a number of ways:

The purchase of land for development
The purchase of land and/or property to be used for commercial purposes
To buy as an investor or business

Here at Hunter Finance, we offer short-term property loans for full commercial or semi-commercial premises.

Call us today on 01825 749721 to check your eligibility for a loan.

Advantages and disadvantages of commercial mortgages:

Pros:

Interest payments on a business mortgage are tax-deductible
If the property value increases, so will your capital
There is no increase in rent
Sub-letting is permitted
Add, change or decorate the estate as and when you please

Cons:

A large deposit is required
Relocation of the business is harder to do if you are tied into a mortgage
It is your responsibility to look after the building should a problem arise
A variable commercial mortgage is subject to an increase in interest rates
A decrease in the property value will mean a decrease in your capital

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Applying for a commercial mortgage

Consider your business cashflow:

Cashflow enables a business to pay bills, rent, expenses and salaries as well as measuring profit and growth.

Before applying for a loan, predict your future cashflows.

You will need to provide information to your lender about your finances to prove that you will be able to repay your loan.

It would be useful to consider the maximum amount you will be able to afford to pay back per month.

Every lender will require cash flow evidence as well as forecasts so they know what your available cash amount is at any given time.

Find a property:

It can be helpful to consider the criteria for your property search – size, commutability, closeness to transport links, health and safety requirements.

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The application process

Provide credit reports: Brokers will need to know the extent of your financial stability. They will request credit reports, as well as payslips, or company accounts.
Stakeholder details: You will need to provide information about who will be responsible for repaying the commercial property loan.

Additional fees

A business mortgage will also come with additional fees and costs.

It is important to consider the following:

Arrangement fees
Valuation charges
Legal fees
Redemption payments
Stamp Duty

Interest rates for commercial property loans

Interest rates vary from lender to lender.

We believe that our rates compare favourably with our competitors.

If you’d like to find out more about our low rates, call our team on 01825 749721.

We use our loans calculator to give you a personalised quotation.

What are my alternative options?

Bridging loans

Bridging loans are used to effectively ‘bridge the gap’ between a purchase and full repayment of a property.

At Hunter Finance, property loans are quick, easy and straightforward, and we lend from £100k to £1million.

A rapidly-arranged bridging loan can make the difference between a sealed deal and a lost opportunity.

Short-term loans

Short-term loans are typically used to cover capital, cashflows as a mode of financial relief.

Our loans are predominantly short-term, starting from £100,000.

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Personal loans

You do not have to be a homeowner to apply for personal funding.

These tend to range between £1,000 and £25,000.

If you are planning to buy a small or mobile home, which tends to cost much less than a larger home, then a personal loan may be a suitable option.

We have been developing properties and providing development finance for over a decade, helping individuals, investors and businesses with their construction projects.