Anyone who’s ever applied for a residential mortgage will know what a protracted process the experience can be and that it can be extremely beneficial to use a mortgage broker. When it comes to commercial mortgages, the process can be even more protracted and complicated, thereby making using a commercial mortgage broker even more important.Commercial mortgage lenders generally specialise in the types of use that the buildings are put to and even the type of construction that the buildings are made from, thereby differing from each other. Additionally, different lenders will offer varying terms of their lending, including interest rates, loan-to-value percentages, and assessment of the incomes of the businesses or property owners (landlords) applying.
There are hundreds of lenders for commercial mortgages, some of which are better known for also offering residential mortgages; the majority, though, aren’t well-known.
What, therefore, are the criteria that make up commercial mortgages and to what extent can they differ? We’ll look at lender interest rates, terms, fees, and lending minimums/maximums. In respect of the applicant business, important considerations a lender will make include its trading period, its turnover and profits, the type of business that it is, the proposed property construction and value, the size of the loan, and the term required to repay the loan.