Commercial & Bridging Mortgages in UK
A commercial mortgage is a loan taken on a property that is not your home. It is secured on any property to be used for business purposes. Commercial mortgages are designed to suit both the lender and the borrower. It is usually a long-term
loan, up to 25 years, where the mortgage lender gives up to 70% of the property’s value.
As a business owner, you can get a commercial mortgage to purchase a business property for use, rent, or unlocking the equity in owned buildings. The interest rate of this kind of mortgage is higher than a residential mortgage because of its higher risk. Your credit history determines if your commercial mortgage application is successful.
You may be asked to pay fees like arrangement fees, valuation fees, legal fees, and broker fees. All commercial mortgages are not the same; the way you use your property and how you use it affects the amount you can borrow and the interest
rate.
It is essential to choose the right commercial mortgage, The Mortgage Brigade is on hand to assist with your mortgage needs. We work with you to find relevant commercial mortgages available to you.
If you would like to apply for a commercial mortgage, the steps are simple
- Fill and submit the Asset and Liability form.
- Fill and complete the commercial mortgage application form.
- Give enough information about your business.
- Value the property.
- The lender’s solicitors carry out all legal, due diligence.
- Upon approval, receive a mortgage offer by the bank.
At The Mortgage Brigade, our expertise and pool of Commercial Mortgage Lenders allow us to match your needs and requirements with the most suitable option, whist simultaneously ensuring a smooth and unburdened application process.
Contact us today to see how we can help with your commercial mortgage needs.
A bridging loan is a short-term loan, usually up to a year, and is used in changing real estate. As a homeowner, or business you can use bridging loans to purchase a new commercial property or home while waiting for your current property to sell.
Property buyers usually use this loan to bridge the gap between purchasing a new property and capital release from an existing property. Lenders offer bridge loans to borrowers who have excellent credit ratings and significant home equity.
This loan comes at a higher interest rate compared to other mortgages. With a bridging loan, you can borrow up to 80% of your equity. Compared to traditional loans, bridging loans have a faster application, approval, and funding process. You could use the equity in your current home for the down payment on your purchase of a new home.
Bridging loans can be taken by property developers and investors, businesses, homeowners, and property owners. However, it acts as a cash injection and not a replacement for a long-term solution.
A closed bridging loan involves you knowing how you will repay the loan exactly. You will have to let the lender know the funds you will be using to pay off the loan (exit plan). Most times, closed loans are settled within a few months. On the other hand, an open bridge plan can be used as a means to get funds for an urgent transaction and does not require an exit plan. You will not need to give a detailed list of how you will pay the loan, and you have up to a year to repay.
At The Mortgage Brigade, we understand the process involved in taking out a bridging loan, and we have expert brokers ready to assist you.
