Which Commercial Mortgage is the Best?
The best lender and product will depend on your own individual circumstances. Not all lenders will offer each product, so it’s important to compare the entire market when searching for the best deal.
If you’re unsure which product is the most suitable for you, contact [Link to Contact page] one of our experienced experts, who will be happy to talk through your options.
Comparing Commercial Mortgage Products
When comparing products, it’s important that you take all fees and charges into account. Choosing a product based on the interest rate alone will often result in you not selecting the cheapest option.
By considering all of the above, you can get an understanding of the total cost of the loan, allowing you to make a smarter choice
What Happens Once I Apply?
We like to keep things simple, so we’ve refined the process.
We review the product selected against your circumstances and will call you to ensure that you’ve chosen the best product for your circumstances.
If this is all in order, then we will let you know what documents the lender will need to take your application forward and request them from you by email.
If there is an opportunity to save you even more money, we will offer you an alternative product.
Comparing Different Types of Commercial Mortgage Lender
Lenders come in different varieties and each have their own benefits and drawbacks.
The most well-known tend to be high-street banks, which often offer very low interest rates compared to other lenders. Although these rates are very attractive, they do also tend to come with the most stringent criteria and as such, not everyone will be eligible.
These mortgages from high-street banks are typically reserved for the best quality applications, which means strong credit history and affordability. Commercial investment mortgages will be expected to have long leases in place with high quality tenants.
Challenger banks are growing in popularity and are a strong alternative to high-street banks. They do often charge slightly higher rates than the high street, but do benefit from certain perks, such as higher loan to values and the ability to pay interest only.
Challenger banks may be willing to accept shorter leases, take a more relaxed view to affordability and may accept historic credit problems.
Finally, specialist commercial mortgage lenders tend to take a very relaxed view to lending in comparison to the other two. The price you pay for this is a higher interest rate and lower loan to values. These lenders will rarely be the first choice but can be a valuable source of funds when needed.
Comparing Commercial Mortgages to Residential Mortgages
Commercial mortgage rates are generally higher than residential and the maximum loan to value lower. We regularly discuss this with borrowers who are unfamiliar with commercial borrowing who feel that the rates charged are too high.
The reason for the difference in rate is due to the higher risk associated with borrowing. This comes down to the increased risk of missed payments and arrears and the fact that commercial property is less liquid than residential.
Another key difference between the two is the fact that commercial lending tends to be handled manually, rather than by a computer. This can lead to more back and forth between yourself and the lender. However, it does allow you to explain yourself and for common-sense lending to take place.
Compare products above and apply online for your preferred option.
We manage your application through to completion for you, helping you every step of the way.
We’re not just interested in introducing you to a lender. We want to work with you throughout the whole process to ensure the application is complete quickly and easily.
Why Compare Commercial Mortgages with ABC Finance Ltd?
Costs can vary significantly between different lenders. With a number of rates and fee options and repayment methods, there are big savings to be made.
Whether you want to check you’re on the best deal or purchase a new commercial property, we can save you money and take all the hassle out of the process.
Securing Your New Commercial Mortgage
To secure your new business mortgage, compare the products above and apply online instantly.
Alternatively, to discuss your requirements with an expert, enquire now for a call back, or get in touch now on 01922 620008.