A deposit of 25% is usually the minimum required. If the property is going to be occupied by you, it might be possible to get an LTV of 80%. The more money you can invest means you can access better rates, as borrowing with the highest Loan To Value (LTV) means you can only access the highest rates.
Commercial re-mortgages could be used to move, expand or improve your business. They could also be used to consolidate more expensive borrowing or give a working capital cash injection.
Can a commercial mortgage be used as an exit to repay a bridging loan?
If you have a higher deposit of around 50% of the purchase price then this is possible. A higher deposit is needed because you won’t have any trading history to demonstrate your ability to repay the mortgage, so the risk of lending is higher.
You can apply for a commercial mortgage after having your property offer accepted. Although you can apply directly to a lender, this may not get you the best rate. Because there are so many alternatives for commercial mortgage financing, it is advised that you work with a mortgage broker that has the connections and expertise to identify the best offers. You might get assistance from a broker with the loan application procedure. At ProLead Mortgages, we are experienced experts in commercial mortgage finance. Contact us to discuss your borrowing needs.
