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21 Nov 2019

Mortgage Advice

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Commercial Mortgage Lending

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Commercial Mortgage Lending

Comercial mortgage interest rates

One of the most common and first asked questions is “How much will it cost me?”

Unfortunately, this is the proverbial “how long is a piece of string?” question.

Obtaining a Commerical Mortgage or Commercial Remortgage is a much more complex proposition than obtaining a residential mortgage.  There are a lot more variables to take into account.

However, what we at Go Direct Commercial Mortgages are confident of, is that you will not find a better commercial mortgage rate anywhere else.

Due to the vast range of businesses we see and the vast range of properties, it is hard to draw to many analogies on mortgage rates.

However, we have seen rates from as low as 1% above base rate to as high as 5% above base rate.  Lenders fees are generally around 1% for a standard Commercial Mortgage or Commercial Remortgage, but again can vary depending on what type of deal we are looking at.

Interest rates are affected by a number of issues relating to the property and the underlying business.  Things such as:

  • Loan to value ratio;
  • Experience
  • Age of business;
  • Sector of business;
  • Financial Performance.

Knowing how best to present this information is what we at Go Direct Commercial mortgages are expert in, and why we are able to obtain you the best possible deal.

Commercial Mortage Lending Fees

Valuation fees are a similar issue, with some fees being £450 and others being £1,800.  It is usual for valuation fees to be paid upfront, and often lenders will wait until a valuation has been completed before offering formal terms.  Needless to say we at Go Direct Commercial are on hand every step of the way to advise and help you.

Unlike residential mortgages, Commercial Mortgages and Commercial Remortgages are nearly always structured as Capital and Interest repayments.  Lenders can offer periods of Interest only lending, but rarely will this be for longer than 2 years or so, and only in certain circumstances.

 

Do you want Commercial mortgage advice?

If you would like to find out more about Commercial Remortgage schemes please contact us for commercial remortgage advice

 

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Commercial mortgages may not be regulated by the Financial Services Authority

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Authority. Registered in England & Wales Company 5703224.

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500