Property Finance and Refinance
A Commercial Mortgage Loan is a longer term loan which replaces the short term loan initially used to ‚kick-start‘ a development project. This type of loan is secured against a commercial property, whether that’s business premises, restaurants, shops/supermarkets or even factories. Commercial Mortgages are much more flexible than residential mortgages; interest rates are generally much lower and repayment terms much shorter. This is because small businesses provide a bigger business to the lender than residential properties do, so lenders are more willing to offer a larger amount of capital. As a result, there is a large level of incentive available to commercial mortgage customers as there is plenty of competition between banks/building societies for their custom. In fact, many of the most successful and powerful commercial mortgage lenders, as well as top commercial mortgage brokers, avoid originating small balance loans to businesses. As far as the lender is concerned, the amount of work and the effect involved in closing a small loan is exactly the same as closing a big one, but the compensation to the firm can be 10 times less.