How a Commercial Mortgage Can Help Your Business
Exclusive Summary About Commercial Mortgage by David Miles and Darren Yates
A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property.
Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs.
A commercial mortgage can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses.
Here are some typical uses for a commercial mortgage or remortgage:
- Borrowing money to buy a shop
- Raising finance to purchase an office building
- Buying a pub
- Financing the purchase of a restaurant
- Buying a hotel
- Buying a house to convert to a Bed & Breakfast (B&B)
- Raising finance to buy an existing business
- Clearing a business overdraft
- Improving business cashflow
- Buying new plant or machinery
- Financing the purchase of company vans and other vehicles
- Borrowing money to buy extra stock for your business
- Funding the expansion or refurbishment of your offices
- Borrowing money to pay for training
- Buying land for business purposes
US Commercial Mortgage Basics
Commercial mortgages are what they pursue.
Similar in many ways to residential loans, commercial mortgages require far more paperwork. When you apply for a commercial mortgage, you will typically be offered two different types of loans: fixed rate loans and variable rate loans.
If you’re obtaining a commercial mortgage and interest rates are heading higher, a fixed rate likely is a better option. You can always refinance your mortgage should
interest rates go lower than your fixed rate.
With a variable rate commercial mortgage, the interest rate will fluctuate during the payback period. With some variable rate loans, the rate is fixed for the first few years, and then converts to a variable rate loan.
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