What to consider when choosing a commercial mortgage
Commercial mortgages vary depending on your business, the sector it’s in and the premises you’re wishing to purchase, and decisions made now can have long-lasting ramifications. So, if you’re considering taking out a commercial mortgage, make sure you’ve considered the following before committing.
Understand the difference between a commercial mortgage and a residential mortgage
Many commercial mortgages are processed and agreed manually, as each business situation varies so much, which means it can take longer to finalise than a residential mortgage. However, this means commercial mortgage underwriters have greater flexibility and look at each application with a more open mind, so you may end up with an agreement completely different to one you are used to.
Understanding lending criteria
From loan size and length of term to your credit score and the industry you operate in, there are many different criteria’s lenders look at when deciding to accept your application. So before submitting your application, ensure you know exactly what you will need to provide and what checks will be carried out so you can prepare in advance and give yourself the best chance of a favourable outcome.
How much the commercial mortgage is going to cost you overall
It’s easy to get lost in the here and now, especially when looking at mortgage payments. But be careful you don’t end up paying more for your mortgage overall, just to save a few pounds now. If you can afford higher repayments that reduce the term and therefore the amount interest you pay, then the amount you save in the long run will be no small sum.
Talk to a commercial mortgage broker
When searching for a commercial mortgage, the best way to secure the best deal for your requirements both now and in the future is to talk to a professional broker. Here at FC Funding, our team of experienced brokers take the time to understand your needs to find you the best mortgage deal on the market.
FC Funding is a leading commercial finance brokers, and have helped hundreds of clients secure the best possible commercial mortgage for their business. To find out more about our services and how we can help, call 01202 937880 today.