{"id":133555,"date":"2019-10-01T13:24:49","date_gmt":"2019-10-01T12:24:49","guid":{"rendered":"http:\/\/chrisw92.sg-host.com\/?p=133555"},"modified":"2019-12-15T11:21:22","modified_gmt":"2019-12-15T11:21:22","slug":"commercial-mortgage-considerations","status":"publish","type":"post","link":"https:\/\/realbusiness.co.uk\/commercial-mortgage-considerations","title":{"rendered":"Three key considerations for a commercial mortgage"},"content":{"rendered":"<div class=\"cmtoc_table_of_contents_wrapper\"><div class=\"cmtoc_table_of_contents_description\">Table Of Contents<\/div><ul class=\"cmtoc_table_of_contents_table\"><ul class='cmtoc_table_of_contents_sublevel_wrapper'><li id=\"cmtoc_table_of_contents_0\" class=\"cmtoc_table_of_contents_row cmtoc_level_1\"><a href=\"https:\/\/realbusiness.co.uk\/commercial-mortgage-considerations#cmtoc_anchor_id_0\">Commercial Mortgages<\/a><\/li><li id=\"cmtoc_table_of_contents_1\" class=\"cmtoc_table_of_contents_row cmtoc_level_1\"><a href=\"https:\/\/realbusiness.co.uk\/commercial-mortgage-considerations#cmtoc_anchor_id_1\">Things to consider when applying for a commercial mortgage<\/a><\/li><li id=\"cmtoc_table_of_contents_2\" class=\"cmtoc_table_of_contents_row cmtoc_level_1\"><a href=\"https:\/\/realbusiness.co.uk\/commercial-mortgage-considerations#cmtoc_anchor_id_2\">1. Commercial mortgages have many purposes<\/a><\/li><li id=\"cmtoc_table_of_contents_3\" class=\"cmtoc_table_of_contents_row cmtoc_level_1\"><a href=\"https:\/\/realbusiness.co.uk\/commercial-mortgage-considerations#cmtoc_anchor_id_3\">2. You?ll usually need a deposit?<\/a><\/li><li id=\"cmtoc_table_of_contents_4\" class=\"cmtoc_table_of_contents_row cmtoc_level_1\"><a href=\"https:\/\/realbusiness.co.uk\/commercial-mortgage-considerations#cmtoc_anchor_id_4\">3. It\u2019s important to look beyond the high street for a commercial mortgage<\/a><\/li><li id=\"cmtoc_table_of_contents_5\" class=\"cmtoc_table_of_contents_row cmtoc_level_1\"><a href=\"https:\/\/realbusiness.co.uk\/commercial-mortgage-considerations#cmtoc_anchor_id_5\">Independent broker support<\/a><\/li><\/ul><\/ul><\/div><style>ul.cmtoc_table_of_contents_table * { list-style-type:none !important; }.cmtoc_table_of_contents_wrapper {\n\t\t\t\tbackground-color: #fff;\n\t\t\t\tborder-width: 0px;\n\t\t\t\tborder-color: #373737;\n\t\t\t}.cmtoc_table_of_contents_wrapper ul.cmtoc_table_of_contents_table li.cmtoc_level_0 a {\n\t\t\t\tfont-size: 25px;\n\t\t\t\tcolor: #373737;\n\t\t\t}.cmtoc_table_of_contents_wrapper ul.cmtoc_table_of_contents_table li.cmtoc_level_1 a {\n\t\t\t\tfont-size: 14px;\n\t\t\t\tcolor: #373737;\n\t\t\t}.cmtoc_table_of_contents_wrapper ul.cmtoc_table_of_contents_table li.cmtoc_level_2 a {\n\t\t\t\tfont-size: 19px;\n\t\t\t\tcolor: #373737;\n\t\t\t}.cmtoc_table_of_contents_wrapper ul.cmtoc_table_of_contents_table li.cmtoc_level_3 a {\n\t\t\t\tfont-size: 16px;\n\t\t\t\tcolor: #373737;\n\t\t\t}.cmtoc_table_of_contents_wrapper ul.cmtoc_table_of_contents_table li.cmtoc_level_4 a {\n\t\t\t\tfont-size: 13px;\n\t\t\t\tcolor: #373737;\n\t\t\t}.cmtoc_table_of_contents_wrapper ul.cmtoc_table_of_contents_table li.cmtoc_level_5 a {\n\t\t\t\tfont-size: 10px;\n\t\t\t\tcolor: #373737;\n\t\t\t}.cmtoc_to_top_btn {\n\t\t\t\tbackground-color: #fff;\n\t\t\t\tborder-width: 1px;\n\t\t\t\tborder-color: #cecece;\n\t\t\t\twidth: 40px;\n\t\t\t\theight: 40px;\n\t\t\t\tfill: #111;\n\t\t\t}.cmtoc_to_top_btn #cmtoc_svg-arrow {\n\t\t\t\twidth: 40px;\n\t\t\t\theight: 40px;\n\t\t\t}<\/style><div class=\"booster-block booster-read-block\"><\/div><h2>Commercial Mortgages<i id=\"cmtoc_anchor_id_0\" class=\"cmtoc_invisible_anchor\"><\/i><\/h2>\n<p><span style=\"font-weight: 400;\">As with all types of property loans, it&rsquo;s advisable to compare commerical mortgages from as many lenders as possible before deciding which lender to commit to. Use a <\/span><strong><a href=\"https:\/\/www.ukpropertyfinance.co.uk\/mortgages\/calculator\/\" target=\"_blank\" rel=\"noopener\">mortgage calculator<\/a><\/strong><span style=\"font-weight: 400;\"> to establish your budget, before organising a whole-of-market mortgage comparison with the help of an independent broker.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Aside from these fairly obvious considerations, there are a few things all prospective clients need to know about commercial mortgages. Irrespective of your intentions for the property or land you wish to purchase, it&rsquo;s worth bearing in mind the following to help you make the right decisions.<\/span><\/p>\n<h2>Things to consider when applying for a commercial mortgage<i id=\"cmtoc_anchor_id_1\" class=\"cmtoc_invisible_anchor\"><\/i><\/h2>\n<h2><b>1. Commercial mortgages have many purposes<\/b><i id=\"cmtoc_anchor_id_2\" class=\"cmtoc_invisible_anchor\"><\/i><\/h2>\n<p><span style=\"font-weight: 400;\">Depending on the type of business you run, you could apply for a commercial mortgage for a number of reasons. Examples of the most common applications for commercial mortgages include the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Residential buy-to-let<\/b><span style=\"font-weight: 400;\"> &ndash; purchasing properties to be let out to residential tenants<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Commercial buy-to-let<\/b><span style=\"font-weight: 400;\"> &ndash; purchasing properties to let out to businesses<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Owner-occupied<\/b><span style=\"font-weight: 400;\"> &ndash; purchasing premises to be used for your own business<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It&rsquo;s worth remembering that the type of commercial mortgage you need will have an impact on eligibility, affordability and the general terms of the loan?&rdquo; not to mention which lenders are suitable for your requirements.<\/span><\/p>\n<h2><b>2. You?ll usually need a deposit?<\/b><i id=\"cmtoc_anchor_id_3\" class=\"cmtoc_invisible_anchor\"><\/i><\/h2>\n<p><span style=\"font-weight: 400;\">Most commercial mortgage lenders will need a deposit from you. The only exemption to this particular rule, where loans of 100% or more of the property&rsquo;s value may be offered by the lender, is with bridging finance. Some <\/span><strong><a href=\"https:\/\/www.bridgingloans.co.uk\/lenders\/\" target=\"_blank\" rel=\"noopener\">bridging lenders<\/a><\/strong><span style=\"font-weight: 400;\"> and property development specialists are able to offer high LTVs in accordance with the collateral provided by the borrower and their financial circumstances.<\/span><\/p>\n<figure id=\"attachment_133558\" aria-describedby=\"caption-attachment-133558\" style=\"width: 700px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-133558 size-full lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"http:\/\/realbusiness.co.uk\/wp-content\/uploads\/2019\/10\/Commercial-mortgage-considerations.jpg\" alt=\"Key considerations for a commercial mortgage\" width=\"700\" height=\"467\"\/><figcaption id=\"caption-attachment-133558\" class=\"wp-caption-text\"><noscript><img decoding=\"async\" class=\"wp-image-133558 size-full lazyload\" src=\"http:\/\/realbusiness.co.uk\/wp-content\/uploads\/2019\/10\/Commercial-mortgage-considerations.jpg\" alt=\"Key considerations for a commercial mortgage\" width=\"700\" height=\"467\" srcset=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2019\/10\/Commercial-mortgage-considerations.jpg 700w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2019\/10\/Commercial-mortgage-considerations-300x200.jpg 300w\" sizes=\"(max-width: 700px) 100vw, 700px\"\/><\/noscript> <em>The best deals on specialist loans often involve looking beyond the high street.<\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">In most instances, with a regular commercial mortgage, you will be offered a maximum of 75% of the total price of the property. As is the case when buying a residential property, you will therefore be required to come up with the additional 25% in the form of a deposit. This can be an important point for some investors, who simply do not have this kind of money to hand over as a lump-sum payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&rsquo;re in any way concerned regarding deposits and upfront payments in general, discuss the available options with an independent broker before applying.<\/span><\/p>\n<h2><b>3. It&rsquo;s important to look beyond the high street for a commercial mortgage<\/b><i id=\"cmtoc_anchor_id_4\" class=\"cmtoc_invisible_anchor\"><\/i><\/h2>\n<p><span style=\"font-weight: 400;\">Last but not least, it&rsquo;s perfectly possible that the ideal commercial lender for your needs can&rsquo;t be found in the usual places. Getting the best deal where specialist loans are concerned almost always means setting your sights <\/span><i><span style=\"font-weight: 400;\">beyond<\/span><\/i><span style=\"font-weight: 400;\"> the high street. Conventional banks and lenders offer commercial mortgages, but this does not mean they are the most cost-effective route to take for the mortgage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Away from the high street, you will find an extensive network of niche lenders and <\/span><strong><a href=\"https:\/\/www.ukpropertyfinance.co.uk\/mortgages\/types\/commercial\/\" target=\"_blank\" rel=\"noopener\">commercial mortgage<\/a><\/strong><span style=\"font-weight: 400;\"> specialists. Particularly if you have an imperfect credit history, you may need to set your sights on the more specialist lenders on the market. On the plus side, being turned down for a commercial mortgage via the usual channels doesn&rsquo;t necessarily mean being counted out of the running elsewhere.<\/span><\/p>\n<h2><b>Independent broker support<\/b><i id=\"cmtoc_anchor_id_5\" class=\"cmtoc_invisible_anchor\"><\/i><\/h2>\n<p><span style=\"font-weight: 400;\">Whatever your requirements, it&rsquo;s advisable to take your case to an independent broker. Along with all the usual high street names, an established broker will help you compare deals from the UK&rsquo;s most dynamic specialist lenders. In addition, considering the available options with the help of a broker can ensure your credit history is protected from any further damage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use a commercial mortgage calculator to establish your requirements and your budget before consulting with a broker to discuss the available options.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A commercial mortgage can be used to purchase property or land used for business purposes.<\/p>\n","protected":false},"author":25909,"featured_media":133557,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[2046],"tags":[3672,2158],"class_list":["post-133555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-managing-your-cash-flow","tag-commercial-property","tag-mortgage"],"views":881,"_links":{"self":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/133555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/users\/25909"}],"replies":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/comments?post=133555"}],"version-history":[{"count":0,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/133555\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media\/133557"}],"wp:attachment":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media?parent=133555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/categories?post=133555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/tags?post=133555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}