Commercial Mortgage

To help you work out your budgets and cash flow, or to simply compare available commercial mortgage deals, to see what difference a commercial mortgage may make to your business, we have created this simple commercial mortgage calculator.

Our commercial mortgage calculator will provide figures for both interest only and repayment mortgages. It has been created to provide you with an approximate guide to the costs of a commercial mortgage.However, as independent brokers we find our customers the facilities that offer them the best possible deal.

Please use our commercial mortgage calculator as often as you like to help you decide what commercial mortgage option would be the best for your business.

As independent commercial mortgage brokers we search the whole market to find our clients the best possible deals for the finance that they require.
There are literally hundreds of different commercial mortgage plans available, allowing us to:
- Provide a wide range of options
- Provide facilities for a wide range of scenarios Commercial mortgage rates start from just 3.25% pa - (2% over Bank of England Base Rate)

Commercial mortgage interest rates and fees will be based on a consideration of the following factors:

1. How long the business has been trading-Business have been established longer will be considered less risk. Unless of course it is a business that the lender feels may have a limited future. For example a video library or cigarette vending machine manufacturer (ban on smoking in public places).New businesses tend to be considered higher risk because when compared to established businesses a higher proportion of new businesses fail.

2. How Successful A business has been making profit-Lenders Will look at previous accounts and projections to see if the business is making a steady profit. They like to see growth and a steady profit each year.A business that has decreasing profits or is making a loss will obviously be a cause for concern.

3. Debt level-Commercial mortgage lenders will look to see the level of debts that a business has.

4. Credit History Of The Business-They will look into the credit history of the business, and also the credit history of the company directors and business owners.

5. Personal Guarantees (PGs) if a personal guarantee is available may well affect the interest rate and terms of the loan. If the owners or directors are unwilling to offer a personal guarantee, even a limited one, this can be looked upon unfavourably by a lender.

6. Mortgage amount required ,size of the loan-Larger commercial mortgages command lower interest rates! The amount of money being borrowed can affect the interest rate on a commercial mortgage. The larger the loan then generally this may mean a lower interest rate. Small commercial mortgages will usually have a higher interest rate. This is because of the costs of running the mortgage account, a higher interest rate may be required on a small facility in order to cover the costs involved and for the lender to make a profit.

7. The Loan to Value-For purchases a deposit of between 25% and 40% will be required. If additional security is available then this can possibly
be used.

8. Who will be using the security property-The lenders will consider who will be using the commercial property. The property owner running a profitable business from the security property is usually most favourable.

The lenders also like investment properties where there is a long lease in place with a good tenant.

Download our app today to utilise the Commercial finance calculator and search for the best deals in the market.