With the UK officially in recession, access to finance has become a concern for many across the country. For this reason, more business owners are turning to commercial mortgages to keep business moving. Whether you are looking to expand or refinance current properties, it’s crucial that you understand your options.
Where would a commercial mortgage be viable?
Commercial mortgages can be used to purchase a property or land that is used for business purposes. They can also be used to refinance a property that you already own.
There is a range of reasons why you may want a commercial mortgage. This includes:
- Residential investment – letting out a property to residential tenants
- Commercial investment – letting out a property to businesses
- Owner-occupied – purchasing property for your own business
Why would business owners consider a commercial mortgage following COVID-19?
During the coronavirus pandemic, there are also a number of reasons why business owners may turn to a commercial mortgage broker to support them in finding the best financial solutions. This includes:
- Securing a better interest rate
- Reducing their monthly costs
- Getting involved in an industry where business is growing
- Raising finance to support the business during difficult times
Where is the best place to get a commercial mortgage?
When it comes to the different lenders available, there are many options to consider. Firstly, the costs, interest rates and repayments for your commercial mortgage will vary from lender to lender. As well as this, the terms of the mortgage, including the duration of repayments will change depending on the product you receive.
A specialist financial broker such as Finance 4 Business can support you in developing a solution that is bespoke to your personal situation. We will make sure we have a full understanding of your needs and requirements and select an appropriate lender from our extensive panel.
How has the pandemic affected the commercial mortgage market?
Despite the recession, there are lenders who are very much active in the market. For example, the holiday let market is one sector that is growing strongly and at Finance 4 Business, we have identified opportunities that are available for landlords and property investors.
We can currently provide access to holiday let mortgages up to 75% LTV with income calculations based on the actual holiday-let income generated rather than other restrictive methods.
If you are interested in finding more about commercial mortgages and the opportunities available for you, please call our experienced commercial mortgages team on 0121 309 0444.