Questions to ask your commercial mortgage advisor

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If your business needs to purchase its own premises or you want to invest in commercial property, there are several benefits to using a commercial mortgage advisor.

You will be able to find the best advice from a commercial mortgage broker. A commercial mortgage advisor at a broker will be able to find a suitable mortgage and help with the mortgage application process.

There are many key questions to ask your commercial mortgage advisor.

Do I need a commercial mortgage?

A fundamental first question is whether you need a commercial mortgage, or should you explore alternatives such as bridging loans. A commercial mortgage is for a long-term fixed period, whereas a bridging loan is a short-term loan that can have a fixed repayment date or could be open with no fixed repayment date.

If you know that you can repay the loan within a short time period, then bridging finance could be appropriate as it can save interest payments. You only pay interest until the loan has been repaid. A commercial mortgage advisor that works for a broker who also arranges bridging finance is the best person to advise you.

If you have a large sum to put towards property and need a loan of £50,000 or less, a commercial mortgage may not be the best type of loan for your needs.

What type of commercial mortgage do I need?

Once you have established that you require a commercial mortgage, you need to ask about the various loan options. If you are purchasing residential property to rent out, it means you require a buy-to-let commercial loan. If you want to rent out the property for short periods of time using Airbnb or similar agencies, some buy-to-let lenders will not allow this, but alternative lenders will have suitable loans.

Most commercial mortgages are at variable rates of interest and can go up and down depending on the bank LIBOR rate. It is possible to obtain a fixed rate mortgage that lasts a few years which makes it easier to budget for mortgage repayments.

How do I apply for a commercial mortgage?

After you have established the type of mortgage you require, the next step is to ask your advisor to find a suitable mortgage. They will contact one or more lenders, and hopefully, you will then receive one or more loan offers.

A loan offer will be an initial offer, and a final offer will be dependent on paperwork and legal processes. You will need to provide proof of identity and present audited accounts. The property will need to be valued and legal work will be required by solicitors acting on your behalf and the lenders.

The amount of paperwork involved may seem overwhelming, but your commercial mortgage advisor can make sure that process goes as smoothly as possible.

Any more questions?

To get your commercial mortgage questions answered, talk to a commercial mortgage advisor at Ascot Mortgages who can provide mortgage advice and root out a suitable deal for you.

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*Privacy Notice - Any information provided will be treated with confidentiality and will only be accessible within Ascot Mortgages