Commercial Mortgages
What is a Commercial Mortgage?
A commercial mortgage offers financing to secure significant loans for business premises. Commercial finance mortgages enable companies to acquire properties for their own operations or rental to other businesses, including retail units, offices, warehouses, and more.
Usually, commercial mortgage lenders demand a substantially larger deposit from applicants, aiming for a lower loan-to-value (LTV) ratio, typically around 75%, especially if you plan to use the property for your own business operations. However, if you intend to lease the property, the LTV will be lower, approximately 65%.
By securing a commercial mortgage, businesses can invest in prime locations, enhance their operational capabilities, and potentially generate rental income, thereby improving their financial stability and growth prospects. This strategic investment in real estate can also increase the company’s asset base, offering long-term benefits and financial leverage.
