Are you looking into buying property or land for business purposes? A commercial mortgage could help you. We’ve put together this blog to serve as a guide for you. Read
What Are Commercial Mortgages?
A commercial mortgage is a type of loan that can be utilised in funding the purchase of properties for businesses. It can even be used to purchase existing businesses. Commercial mortgages tend to be medium to long-term in tenure. Due to their nature of business, they are also often referred to as “Business Mortgages”.
Commercial mortgages can also be used as a form of capital release for an existing building, allowing one to further invest in their business with the resulting money. They may also be used to purchase investment properties that are to be leased or rented to other businesses.
on to learn more about commercial mortgages.
Who Benefits From Commercial Mortgages?
Commercial mortgages are great for smaller companies. That’s why they’re also called business mortgages or business mortgage loans. They’re ideal for businesses that have expansion plans with a budget. For example, a business that would prefer buying a property for work rather than renting one.
What Type Of Properties Can You Buy With A Commercial Mortgage?
There are many types of properties you can purchase through a commercial mortgage. Offices, retail outlets, shops, restaurants, and industrial units are just a few examples. Any property that is capable of generating income can be purchased with a commercial mortgage.
What Types Of Commercial Mortgages Are There?
In general, commercial mortgages can be categorized under two main types:
1.Owner Occupier Mortgages:
This type of commercial mortgage comes in use when someone wants to purchase a property for the purpose of running their business.
2.Commercial Investment Mortgages:
Commercial investment mortgages come into use when one wants to purchase a property as an investment opportunity. A great example of this would be if you buy a property with the intention of renting it out to a business. Another way to go about this is through a commercial buy-to-let mortgage. Keep in mind, commercial investment mortgages are often considered risker than owner occupier mortgages.
What Are The Benefits Of Taking Out A Commercial Mortgage?
As we mentioned earlier, commercial mortgages are ideal for smaller businesses. Commercial mortgages allow you to choose the location and size of your business, rather than settling for what you already have. With a commercial mortgage, you can choose a property that is convenient for you, located in your prime business spot, and close to needed facilities. You can pick a property that is near your home, or near your regular commute spots. You even get to pick properties with the right number of parking spaces for you.
Commerical mortgages give small business owners all the freedom they need to personalise their workspaces. You can adapt, decorate, and modify your space as you wish. Commercial mortgages are also beneficial, financially speaking. If you purchase a particular property and the property prices increase in that location, you benefit from gain in value.
With a commercial mortgage, you don’t have to be answerable to a landlord. No more monthly rent, hostage security deposit, or the fear of your rent being raised at any point.
Using A Broker To Take Out A Commercial Mortgage
In truth, commercial mortgages can be complicated if you don’t know what you’re doing, . They may even be off-putting to you. If you’re overwhelmed by the idea of a commercial mortgage, you can breathe easy now knowing there are people who can help.
You can hire specialist commercial mortgage brokers, who can hep you navigate through the nuances of commercial mortgages. If you’re looking for a broker who knows what they’re doing and can help specifically streamline into your type of business, contact us at PFN Finance. We’ve got all the experience you need to make commercial mortgages an easy task.
