Commercial Mortgage Broker
At IMC, we understand that commercial funding is a bespoke market, and with our knowledge and relationships within the sector, we are confident that you will meet your needs when choosing IMC. All commercial mortgages and loans services are provided through our introductory agreement with AJP Finance Ltd. and are regulated by the FCA.
What is a commercial mortgage?
Commercial Mortgages are designed for individuals and companies purchasing a business property as an asset, profiting from rents and property value appreciation. The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial property. Commercial mortgages are not just for buildings. They can be used by companies who simply want to invest – maybe they need more money to take on more staff, or possibly bring in new and improved equipment. Property developers often take out commercial mortgages to allow them to purchase a plot of land and build upon it.
If you are a property developer looking to renovate an old property or a business looking to purchase your own office building, you will need to acquire a commercial mortgage.
How do commercial mortgages work?
As with a residential mortgage, the property will be used as collateral by the lender against the loan, if there is a case of default, the lender will then repossess the real estate.
As with residential mortgages, lenders can be very picky about who they lend money to. It is important to either do your research or seek the help of a broker to find the right lender for you – one that is likely to accept your business for a mortgage.
The two main areas that IMC will look at before committing to your requirements are:
- Determine the value of the asset;
- Security of the individual or company taking the loan. Many times a personal guarantee is required as security for the lender.
Commercial Mortgage Rates
Commercial mortgage rates are usually individually priced to risk. This means that your rate can increase or decrease depending on the information presented to the lender. Commercial mortgage rates can vary from around 2.25% and go all the way up to 18%. Most loans come in between 2.75% and 7%.
When you apply for a mortgage as an individual – depending on market conditions – there’s little incentive for the provider to be competitive in the quote they provide you with. When you see a commercial mortgage broker, on the other hand, the providers are essentially competing against each other to win the ‘job’ from the broker (and ultimately you). Talk to us about your business needs so we can advise on your commercial mortgage options and find the best deal for your situation.
Ask an expert. For more information regarding our Commercial Mortgages services, please get in touch.