09:04 11 June 2013
Commercial mortgages are loans that are used to purchase business premises. They can also be used to buy an existing business in its entirety.
Obviously, this type of mortgage is designed for people who would like to start a business or those who are expanding their current business. Typically, lenders require bigger deposits (perhaps 25-40per cent of the total value) and usually the loan can be paid from one to forty years.
There are several elements that lenders typically take into consideration when approving this type of loan and when they’re calculating interest. They will ask for your business plan, documents that will show how your business is performing for the last one to three years, etc. They will also typically require a detailed plan on how you will make repayments. Professional valuation is often required.
If the underwriter thinks that your business is in a good place, you are more likely to get the loan and on top of that, you may get competitive interest rate.
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