Deciding on whether to purchase a commercial property is a huge decision.
Most us will need to take out a commercial mortgage to help finance the purchase. This is when the decision-making becomes serious as what deal you agree to will affect you for years to come. When searching for your perfect commercial mortgage deal, there are a few things to keep in mind:
1. It’s not all about the rate
Commercial mortgages are complex. The deal offering the lowest interest rate may not necessarily be the best deal. You need to consider the length of time the mortgage will be paid back over, as this will also affect your monthly repayments. Keep in mind your business’ goals, cash flow, and profitability. How much can you really afford to pay back each month whilst still maintaining decent profit margins?
2. Shop around
Chances are your local bank are not providing you with the best deal. There are thousands of lenders out there and by not shopping around and comparing you will be missing out on better commercial mortgage deals. Also, when you go directly to a bank they are selling you their own product and not working to provide you with the best deal out there – which leads us on to our third and final point…
3. Seek professional advice
Talking to a commercial mortgage specialist before you put pen to paper could save you money and help ensure the deal makes sense. They will advise you on the best commercial mortgage deal available for your circumstances, keeping in mind your profitability. As mentioned, commercial mortgages are complexed and having an experienced broker on your team will help you ensure your process of acquiring one runs as smoothly as possible.
If you are interested in a commercial mortgage, contact us. We are independent mortgage brokers based in Neath and servicing clients UK-wide. As independent brokers, we can search the whole of the market to find you the commercial mortgage deal available. Call us on 01639 262222 or click here to send us an email.
Please be aware – your property may be repossessed if you do not keep up with repayments on your mortgage.