![]() ![]() Nowadays, the costs of funds over longer terms are just too expensive, so the banks regularly quote on five-year facilities at lower rates with the repayment profiles over 15-20 years as a standard. Talking of terms, going back 10 years, many high street lenders stopped offering low-interest rates on mortgages (pre 2008 1-1.5% over BBR was the norm), and loan term trackers became very cheap. We can even negotiate deals with your own bank if required, and because of the volume of business we introduce, we will get the very best terms for you. That’s where using a commercial mortgages broker is useful: where there’s a will, there’s a way! Here at Mortgages for Business, we’ve got six commercial specialists across our two offices, and we all meet with lenders weekly (mostly Teams or Zoom nowadays!). Loan terms can vary wildly expect to achieve anything from 10 to 25 years. year’s ending from March 2018 to March 2020). Lenders will likely calculate debt serviceability for businesses impacted by Covid on post-Covid numbers (i.e. A business owner’s ability to make monthly repayments will depend on how the business performs. The risk for lenders is generally higher with business mortgages. Why are commercial mortgage rates higher than for residential mortgages? Therefore, I thought I’d give you a flavour of what rates and terms you can expect to be offered in the current market.Īs you might imagine, lenders price commercial mortgages based on risk (credit history, financials etc.), sector appetite and the cost of funds, and I’m happy to say, that currently, a number of lenders have come back to the table – post-Covid, albeit the interest rates are a little higher!Īnything from £500,000 up but we regularly help clients looking for loans well above £1m. ![]() Recently, we’ve received a number of enquiries from investors and business owners looking for larger loans to finance both commercial properties and mixed-use properties, particularly as some older landlords are exiting their positions from the commercial investment sector (understandable after a deluge of rent arrears picked up during the Covid epidemic). Income tax relief changes for buy to let landlords. ![]()
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