Commercial mortgages are often the best way to achieve finance to buy business premises.
Purchasing premises is a step taken by many growing companies. It protects them from rent rises, landlords ending leases, and many other risks associated with rented property. It is also an investment for the future, building the business’s asset base.
Commercial mortgages are widely available, but businesses should be cautious when dealing with funders with whom they already have a business relationship. The best rates and most suitable deals are often available elsewhere, and can be accessed using an independent adviser, such as the experts at RedSky.
When looking for a commercial mortgage, factors to consider include the term, rates, fees, penalties for early repayment, security, deposit and loan covenants. Fundamentally, you also need to know that the mortgage is affordable and the business will be able to meet the repayments in the long term.
Generally, funding is available for around 70% loan to value (LTV), but it is possible to achieve funding for up to 100% in certain cases which the advisers at RedSky have helped to arrange for businesses in the past.
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Applying for a commercial mortgage
RedSky has experience in securing commercial mortgages for offices, factories, retail units, mixed use properties, new build commercial units, hotels, restaurants and more. Our advisers can guide you through the options for different debt structures, interest-only mortgages, and whether to borrow through the company an individual or a pension.
We work with you throughout the process, helping to deliver a robust application and guiding you to legal professionals for advice as required. Our extensive experience means our advisers know what lenders need to see in the application before they will release funds, so our success rate for achieving funding is exceptionally high.