What is a Commercial Mortgage?

A commercial mortgage is a loan that uses commercial property as collateral. A commercial mortgage is a business loan which is secured against a commercial property.

Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs. But they can also be used to buy other business assets such as plant or machinery.

A commercial mortgage is a loan for a property that is used for business purposes. It's probably the best way to finance the purchase of buildings and land for business because it provides a flexible and affordable solution that gives you access to capital.

A commercial mortgage is probably the best way to finance the purchase of buildings and land for business purposes. It provides the most flexible and affordable finance solution. Commercial mortgages are specialised due to the fact that the lender has a legal claim over the property until the loan has been repaid in full.

As well as being a useful way of financing the purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding the expansion of an existing business.

A commercial mortgage gives you access to capital that you would not normally have access to with minimal up-front payments and the flexibility to design a repayment plan that suits your needs.

The nature of a commercial mortgage requires you to pledge the purchased property to the lender. If you default on the mortgage, the lender is able to foreclose the property and sell it to repay the outstanding money owed to the lender.

A commercial mortgage can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses. A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.

The interest rates on commercial mortgages tend to be lower than the interest rates on unsecured business loans and the repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.

A commercial mortgage can be a cost-effective way to fund many business activities. They can be used to develop an existing business through the purchase of increased office or factory space.

A commercial mortgage can also provide a way of raising additional business loan finance, if the finance is linked to business activity.

The amount of loan required and the level of interest charged will depend on your credit worthiness and an assessment by the provider of your ability to repay. If you have an exemplary business record and have other visible business assets which can be used as a guarantee, then you'll have no trouble getting a commercial mortgage at an attractive rate of interest.

A commercial mortgage can be available for almost any period from 12 months to 25 years.

There are generally two types of interest schemes available when you are applying for a commercial mortgage, fixed rate and variable interest rate.

The Lender will usually ask you to provide your last three years of audited financial statements including a Profit and Loss statement, balance sheet and a cash flow forecast.

Commercial mortgages are specialised because the lender has a legal claim over the property until the loan has been repaid in full. In the event of non-payment the property can be repossessed and sold to repay outstanding mortgage balance.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Mortgage Refinancing Points to Consider
Corsavoo.com, France - 9 hours ago
Though it is probable to attain a no-cost refinance mortgage from a mortgage loan lender, remember that these lenders are out there, trying to earn a ...

Wall Street Journal
Washington's Fannie And Freddie Plan: Why Now?
Forbes, NY - 15 hours ago
Any announcement would come just weeks before the two companies have to refinance $225 billion of mostly short-term notes. Fannie and Freddie sell debt to ...
Video: Obama Calls for Changes in Mortgage Giants AssociatedPress
US government to take over Fannie Mae, Freddie Mac Monsters and Critics.com
Government bail-out for US mortgage giants FannyMae and FreddyMac domain-B
Nolan Chart LLC - HULIQ (press release)all 2,103 news articles

Understanding Mortgage Refinance Rates
SheKnows.com, AZ - Sep 4, 2008
Mortgage refinance rates are the lowest rates, homeowners can get when trying to refinance their mortgages. Simple, isn’t it? Maybe so, but obtaining the ...

TopNews
Troubles spread to prime Md. mortgages
Baltimore Sun, United States - 21 hours ago
... interest-only mortgage with an adjustable rate. The rate kept rising until it was just too much, and he was told he couldn't refinance because the value ...
Report says 3.1 percent of Conn. mortgages overdue Newsday
Home loan troubles break records again The Associated Press
US Mortgage Foreclosures, Delinquencies Reach Highs (Update3) Bloomberg
Washington Timesall 678 news articles

Houston Chronicle
Baytown woman sues lenders, says she was a victim of predatory ...
Houston Chronicle, United States - Sep 4, 2008
Nanette Lewis refinanced her mortgage to get peace of mind. Instead, she says, she got a bait-and-switch, predatory loan and heartbreak. Now far less naive, ...

Outside brokers make calls for bank
Trading Markets (press release), CA - 11 hours ago
Wachovia's refinancing initiative comes as the bank is eliminating 5000 of 11500 jobs in its mortgage unit to cut costs. Insiders describe a difficult work ...

Bargaining for a better loan
Sarasota Herald-Tribune, FL - 23 hours ago
The potential bargaining power of borrowers is greatest on a refinance, because typically they have no time limit on when the money is needed. ...

Foreclosures, Overdue Mortgages Increase Again
Wall Street Journal - Sep 5, 2008
Lower prices, in turn, make it much harder for borrowers to refinance if they fall behind on their payments. The drop in values also means people have less ...

Mortgage Refinance Options to Think About
3x24 - Your Newspaper and News Magazine, Germany - Aug 26, 2008
Very few people in the world can afford to purchase a home in one payment so the world of mortgages and mortgage payments ‘came to be’. Mortgage refinance ...

What’s A Divorce Got to Do with Your Mortgage Refinance?
Corsavoo.com, France - Aug 25, 2008
When you’re the aggrieved partner, you silently wish that things will suddenly take a better turn, especially with an unpaid mortgage. Refinance plans have ...

Wind Chimes and more...

Windchimes for great gifts!

Understanding UK Bridging Finance