Are you setting up a small company from home, or will your business be based in a commercial unit, a workshop or offices? In all cases, a successful business can quickly outgrow its original premises. If that happens, and you want to move on, you may need a commercial mortgage.
Working together with either a financial adviser or mortgage adviser and your accountant, a successful business owner should be in a good position to make the case for a commercial mortgage. Much will depend on your business’s performance and growth to date, but a commercial lender will also ask to see your business plans and projections for the future.
This is one of the reasons why it’s good to have a team of experts working alongside you, who understand your plans in detail.
A good relationship with your bank’s commercial business manager is also useful, and your IFA or mortgage adviser may also have access to other specialist lenders or mortgage deals. Commercial mortgages are usually secured against your business premises, although residential propertycan be used in some cases. Mortgage rates and fees are higher than for a residential loan and in most cases you will need a substantial deposit.
Unbiased.co.uk lists mortgage advisers who specialise in commercial lending. Use our search tool to find an adviser in your area, or an financial adviser who may also be able to help.
Questions you might like to ask your mortgage adviser or financial adviser…
- With a commercial mortgage, does the lender have any claim over my personal assets?
- Are there ways to take a loan other than a commercial mortgage?
- Which type of mortgage would suit my business best?