You’ve already worked hard to get your business off the ground, and now you need some stability to really kick on and firmly establish your brand in the business landscape. Owning your commercial property is the dream, but you’ll need to know how to get a commercial mortgage in the UK if you want that dream to become a reality.
As you’ve likely encountered, the problem is that there’s a lot of confusing jargon around commercial mortgages in the UK, and even just figuring out where to start can be a headache. But it needn’t be overwhelming, especially once an expert on mortgages in Derby explains the basics, such as the types of mortgages available and what to expect during the application process.
Here we demystify commercial mortgages in the UK, hopefully giving you a platform of knowledge to turn your property dreams into a solid, actionable plan. Let’s dive in.
What Is a Commercial Mortgage in the UK?
A commercial mortgage helps businesses buy property for commercial use so that they no longer have to rent, such as an office space, warehouse or retail outlet. This helps stabilise a company as it will no longer be at the mercy of rent fluctuations, as well as removing the risk of eviction.
These mortgages typically require a larger deposit than residential ones, usually between 20% and 40%. The interest rates can also fluctuate wildly in different circumstances, as they reflect the lender’s assessment of the unique risk posed by each individual loan, which is why understanding what a commercial mortgage in the UK is crucial before submitting an application.
Types Of Commercial Mortgages
Businesses have two primary options when it comes to commercial mortgages, with the first being an owner-occupied mortgage. This is the one for companies that intend to operate out of the property they purchase.
The second option is a commercial investment mortgage, which is for companies looking to generate income by renting out the purchased property to other parties.
How To Get a Commercial Mortgage in the UK
Lenders are going to scrutinise your financial history in minute detail once you have submitted an application, so make sure everything is in order before doing so. They will assess your income and creditworthiness, of course, but also the general stability of your business.
Brokers can help a lot here, as they bring a wealth of experience in finding deals ideally suited to your business circumstances, simplifying the daunting process of how to get a commercial mortgage in the UK.
The Benefits Of Commercial Mortgages In The UK
For businesses ready to commit to growth, commercial mortgages provide the financial flexibility to invest in a stable base of operations or diversify income streams through rental properties. Over time, property ownership can also become an asset that appreciates, further boosting your company’s financial standing.
Navigating commercial mortgages in the UK might seem complex, but the right knowledge can make all the difference.
If you want to learn more about commercial mortgages in the UK, get in touch with us at Integritas Financial Planners today to discover more about how to get a commercial mortgage in the UK.
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