Types of commercial mortgages
Owner occupier mortgages
This is when the business owner is looking to buy a property in which they can run their business and conduct their business affairs.
Commercial investment mortgages
This can be used if you are buying a property as an investment opportunity, including renting out the property to other businesses.
Pro’s of taking out a commercial mortgage
Potential drawbacks of taking out a commercial mortgage
Points to consider when taking out a commercial mortgage
Deposits for a commercial mortgage can sometimes be quite hefty, (around 30%), therefore it is a good idea to ensure you are able to pay both the deposit and monthly payments.
If you haven’t been trading for long, lenders may see this as a high-risk case and request personal guarantees.
It is best to use a commercial mortgage broker who is able to navigate the business mortgage world and are able to find mortgage deals that are not available on the high street market.