Commercial Mortgages Information

When buying property, most businesses and property investors have to secure the same kind of finance as private home owners, although the deals on offer are usually quite different. As well as securing initial mortgage loans, companies will often look to re-mortgage property in order to fund further investment in the business – or in the case of property investors, expand their portfolios by financing further acquisitions. At First National Money we have developed long-standing relationships with a wide variety of lending partners, which means we can provide every client with a commercial mortgage deal that is just right for their needs.

Mortgage loans are available for both freehold and long leasehold properties, and almost all lenders will require a percentage of the purchase price to be paid as a deposit – typically 20-30%. Clients can opt for either a variable or fixed rate mortgage, and although repayment periods are flexible, most mortgages are usually set up on a repayment schedule of 15-20 years. With a variable rate mortgage, the interest rates change in accordance with the rate mechanism of the mortgage, usually the Bank of England Base Rate plus the lender’s margin. On the other hand, the interest rate on a fixed rate mortgage remains constant for an agreed period, after which it reverts to a variable interest rate. Both have advantages and disadvantages, depending on whether interest rates move up or down, and ultimately it will be up to you to which type of mortgage is right for you.

If your business or property investment company has one or more existing commercial mortgages in place, it can be tempting to take the easy option when looking for a new mortgage deal, and simply approach your current lender. However, contacting a mortgage broker like First National Money means that you pick and choose from the most competitive deals on the market, and if you’re not locked in to your existing mortgages, you may get an even better deal by switching them all to a new lender. We employ a team of dedicated experts with unparalleled knowledge of the market, which means we can put together a proposal that is perfectly suited to your needs. Call us today for a free quotation with no strings attached.