Explore Commercial Mortgage and it’s benefits

Why Do You Need One?

Why do you need a commercial mortgage refinance? The reasons could be many for many people. You might want to expand your business. You may want to buy that commercial property which you want to develop. Or you may want to develop a residential property. Whatever the reason the need is money and you have a property against which it can be secured.

What You Need To Know.

So, what do we need to know when we go for a commercial mortgage? This segment is a much smaller segment compared to the residential mortgages. But the total value is much larger.

Basically, commercial mortgages can be used to buying business premises, starting land development ventures, developing owner occupied business and adding to a buy-to-let portfolio.

What a businessman sees is that buying a property should be more beneficial than renting it. Which means his repayment should be lesser than the rent. What the lender looks at is security for his money that he lends.

Normally a commercial mortgage is long term, extending up to 30 years. The loans can be up to 70 – 80% of the property value. This means you have to find the source for the balance amount.

What Are the Benefits of a Commercial Mortgage?

The first straightforward advantage of a commercial mortgage is that it frees you from paying rent, which can go up any time. So, you have future-proofed yourself in a way.

The second advantage is that you get money for expanding your business. It is an indirect way to finance your business needs.

As the value of the property goes up you also get to gain from increased income on the property when you rent it out.

Commercial mortgage also helps in other ways. They let you free up money for business expansion. It is good for buying new machinery for your industry. It will help consolidate your debts.

Who Can Offer You One

Many private money lenders are waiting to advance you money for your needs with the least amount of formalities and at very attractive terms. Their terms are flexible and procedure is fast.