If you are a business owner and running a new company, there might be chances that you have no credit history. In such cases, it becomes difficult to get a loan from financial institutions as they will not authorize your loan without any credible proof. For those people who have an established record as a commercial borrower then obtaining the cash is easy but for those who don't have a good credit history, a commercial mortgage can be the best solution.
Finance Hub is a leading UK commercial mortgage provider that provides all the services you need to invest in or purchase properties with complex corporate structures. From large residential portfolios, mixed-use schemes, and even small retail outlets we have an expert team who can help your business grow by providing tailored solutions for every situation. We work with a select group of lenders to provide you with commercial mortgages. We will help your business grow, and we can make sure it does so in the most appropriate way for its needs!
What is a commercial mortgage?
A mortgage is a debt instrument in the form of country, state, or local authority, the public sector organization or an individual used to provide funds for purchasing real estate.
Commercial mortgages are a type of loan that is typically used to finance the purchase of a commercial property. Commercial mortgages can be used to purchase a wide variety of commercial property types, including office buildings, retail space, warehouses, and hotels. The interest rates on these mortgages are usually lower than the interest rates on other types of loans and this makes it a more affordable option for many borrowers.
Commercial mortgages are also relatively easier to obtain than traditional mortgages. This is because the lenders who offer commercial mortgages are more likely to overlook a borrower's credit score and focus on the property that is being mortgaged. These mortgages are unique in that the property serves as collateral for the loan, which means that the lender has a legal interest in the property until the debt is repaid in full.
The commercial mortgage market in the UK
The commercial mortgage market in the UK is well-developed and offers a wide range of products to borrowers. In order to qualify for a commercial mortgage, the borrower must typically have a good credit history and demonstrate that they can afford the monthly payments.
Commercial mortgages are a popular financing option for businesses in the UK. The mortgages offer competitive interest rates and can be used to finance a wide variety of commercial properties. Borrowers should carefully compare the different products available in the market in order to find the best mortgage for their business.
Types of Commercial Mortgage
There are two main types of commercial mortgage: the owner-occupied mortgage and the commercial investment mortgage.
Owner-occupied mortgages are for businesses that occupy their premises. These mortgages usually have a lower interest rate, as the lender is taking less risk by lending to a business that is using the property as its primary place of business.
Commercial investment mortgages are for businesses that do not occupy their premises. If you want to buy property as an investment, then this is the perfect loan for your needs. These mortgages usually have a higher interest rate than owner-occupied mortgages, as the lender is taking more risk by lending to a business that does not use the property as its primary place of business.
Benefits of taking out a commercial mortgage
A commercial mortgage is a loan given to a commercial business to purchase, refinance or renovate commercial properties. Commercial mortgages are typically used by businesses that have been in operation for a number of years and have good credit ratings. There are many benefits to taking out a commercial mortgage, including:
- You can get a larger loan amount than you would with a traditional mortgage.
- The interest rates are usually lower than on other types of loans.
- You can usually get a longer repayment period than with a traditional mortgage. This gives you more flexibility in terms of how you finance your business.
- You can use the commercial mortgage to purchase or refinance a number of different types of commercial properties, such as office buildings, commercial businesses, retail stores, restaurants, warehouses, and factories.
- The approval process is usually faster than for traditional mortgages.
- You can use the funds from the commercial mortgage to pay off other high-interest loans.
- If you have a poor credit record, a commercial mortgage could be your route to purchasing a property as the banks take into account the type of business you run and how long it has been operating when assessing your application.
Finance Hub - We Have Trusted & Proven Lenders
At Finance Hub, we work with a range of sources including specialist lenders and high street banks as well private finance companies (PFCs). We are offering same-day approval for all applicants. You won’t be charged an application fee or any early payment fees when using our service. Therefore, you could grow by overcoming financial issues that are holding back your business growth. We're here at Finance Hub facilitating this process in order for us both to succeed in our business goals.