Commercial Mortgages

Yes Specialist Mortgage Services still offers funding for property developments and commercial purposes.

What is a commercial mortgage?

It may come as a surprise to learn that a commercial mortgage works much in the same way as residential one does. By that, we mean that the Mortgage Lender looks at your ability to repay any loan, with the only difference being that the mortgage will be in the name of the business or investor. The amount offered by the lender may well be based on the income of the company or the investor.

How do we come up with funding?

At Yes Mortgage Services, we have created excellent working relationships with specialist mortgage lenders. This allows us to deliver competitive rates that you would not ordinarily find from the average high street lender. Even when traditional routes of funding appear to be closed off, we can find a way forward for your business.

We can help with businesses who need bridge financing or those who need development finance when there are plans to either build a new property or make wholesale changes to an existing building.

Do you have more information on commercial mortgages?

Simply put, a commercial mortgage is a loan that is secured for any property that is not your residence. There are actually several different types of commercial mortgages, with the pricing and assessment for each based on risk and other factors.

It is not uncommon for businesses to combine a commercial property mortgage with a business loan to get the financing required to purchase a commercial property.

In short,the way in which you plan to use the property will dictate exactly which type of mortgage is available to you. This will include things like interest rates and how much you can actually borrow. Owner-occupied properties will also have a mortgage that is different from a commercial property mortgage

What the costs associated with a commercial mortgage?

Besides stamp duty, there are a number of other fees that will need to be paid as part of any commercial mortgage transaction. Think of it like a personal property mortgage, where things like legal fees and administration fees are part of the cost of doing business.

Stamp duty is a variable rate purchase tax, with the rates calculated based on the price of the property. For more information on the current rates, visit the Government’s website for details on non-residential property stamp duty rates.

What about Commercial re-mortgaging?

If you already own a commercial property and are looking for a better mortgage rate or for equity that can be used to grow the business, a commercial remortgage might be a good idea.

Re-mortgaging is a great way to expand or refurbish an existing property. This is because you will find that mortgage rates tend to be much better than you will find with other commercial finance options.

Re-mortgaging is a common practice in both commercial and personal property, with most individuals or businesses going that route in search of a better rate/deal than the one they have. It’s especially prevalent with those who have been locked into a mortgage for a long time. Generally speaking, you will need to deliver new figures and/or projections which show that your position has improved, as this will make it more likely that you will receive a better deal or rate.

You may also have the option of consolidating other debts into your existing mortgage. The reason for doing so is to make your total monthly payments smaller by stretching the repayment over a lengthier period of time. It is worth noting, though, that doing so will mean that you pay more interest over that time.

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We need to be honest with you… Your home may be repossessed if you do not keep up repayments on your mortgage.