A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property. Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs.
But they can also be used to buy other business assets such as plant or machinery.
As well as being a useful way of financing
purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding expansion of an existing business.
A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.
A commercial mortgage can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses.
The interest rates on commercial mortgages tend to be lower than interest rates on unsecured business loans and repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.
What About a Remortgage?
If you already have a commercial mortgage on your company's business premises, you might find you could benefit from remortgaging.
A commercial remortgage allows you to unlock some of equity that is currently tied up in your commercial property. It could also be a chance to switch to a more competitive, cheaper mortgage, especially if your or your company's credit rating and business history have improved since you took out your original commercial mortgage.
