Commercial mortgages have various different specialist purposes, all of which can be catered for by the lenders available for us to use, meaning you get the some of the best possible rates on the type of mortgage you are seeking:

What would I use a Commercial Mortgage for?

• Commercial Investment: For an investment in the commercial rented sector where the tenants will be businesses other than your own.
• Business Purposes: Where your business will be the largest occupier of the property for which you are requesting mortgage quotes.
• Buy to Let: For an investment in residential property where the tenants will be residents.
• Development: Purchase of a site that will be developed or refurbished prior to income being generated.

What advantages does it have over other methods of raising finance?

• Retain Ownership - Instead of raising funds by selling an interest in the property or the business to an investor, you retain complete ownership of both. The mortgage lender is only entitled to an interest return on its mortgage, not a percentage of business ownership that an investor would expect. Also he/she can only exercise the right if you default. You retain all the benefits of ownership in an asset that has the potential to appreciate in value.
• Better Cash Flow - A business mortgage gives you access to capital with minimal up-front payments and the flexibility to design a repayment schedule that suits your needs.
• Maximize Financial Leverage.
• Commercial mortgage schedules are preset, making cash management more predictable.
• The Tax advantage - Interest payments on your commercial mortgage are tax deductible and are made with pre-tax money. Purchases financed with profits, in contrast, are, made with after-tax money.
  

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