Like
any loan, there are always pros and cons and benefits
and risks when it comes to taking out commercial mortgages – so is it
right for
you?
There are many reasons why you
might be looking into
commercial mortgages – you may be starting a business, buying an
existing
business that ties into your line of work, or your own business may be
expanding and need bigger premises. Whatever the reason, you will need
a
commercial mortgage. Commercial mortgages, like any mortgage, are a big
financial decision, and can take anything from 15 to 30 years to pay
off. So
before making your decision, make sure you are aware of the risks and
the
benefits, and ensure you seek advice from a professional financial
advisor.
Commercial
Mortgages
– The Benefits
There
are many pros in buying commercial mortgages,
including:
- Mortgage repayments
can be similar, even cheaper, then rent on commercial premises
- Commercial mortgages
mean you are not vulnerable to unwanted rent increases
- There are tax
deductions available to you on the interest on a commercial mortgage
- If the property
price rises, your capital increases
Commercial Mortgages
- The Risks
Just as any mortgage, the risk of commercial mortgages is if
you cannot keep up loan repayments for whatever reason. All businesses
have to
take risks, albeit thought-through, calculated risks and it is
necessary to
loan money in order to expand. A commercial mortgage is simply that – a
loan
that allows you to expand, grow or pursue your business ambition. The
risk with
commercial mortgages is your property itself will be at risk if you
fall into
mortgage arrears. It is possible to find other financial solutions –
such as
bridging loans – if this happens, but only if you have alternative
finance
coming in from a business deal or transaction for example, that will
pay off
the bridging loan and allow you to ‘bridge’ the financial deficit.
Many high
street banks offer commercial mortgages, but
the lenders’ criteria are strict and have become even stricter in
response to
the current credit squeeze. There are lenders however such as Blue
Turtle
Finances that specialise in helping those who don’t have conventional
financial
set-ups or even have a poor credit history. You may not even need a
detailed
business plan or future projection of your finances as in effect, the
security
they need is tied up into the property you are buying. The risk you
take with
commercial mortgages is repossession – as with any mortgage - and the
fact that
your finance will be tied into a property whose value could depend on
the whims
of the property market.
Blue Turtle Finance is a family run business, providing a first class,
friendly and professional service. Our clients are of prime importance
to us, we always take the time to listen to their requirements and
concerns. At Blue Turtle Finance we work with you, to achieve the best
plan to suit your financial requirements for commercial mortgages and
bridging loans. Blue Turtle Finance will not put you through to a call
centre but guarantee one to one personal attention from your initial
application right through to completion. Blue Turtle Finance specialise
in adverse and severely adverse credit. To find out more email: info@blueturtlemortgages.co.uk
or telephone: 0845 460 6616.
Click
here
NOW for a Quote!
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