Benefits of a Commercial Mortgage
Bad credit mortgages are mortgages that are available to people with a poor credit history.
A commercial mortgages typically offer better interest rates than business loans because the lender has the security of the property in the event of default. Below are a few benefits of taking out a commercial mortgage:
- You have the potential for capital growth
- The interest on the loan is tax-deductible
- You can make extra income from renting out the property
Semi-Commercial Mortgage Rates
There are a few factors that determine the rate the lender may offer you, such as: deposit size, type of property, business plan & viability. Your commercial broker will advise you in more detail.
Can I obtain a semi-commercial mortgage with bad credit?
The answer is yes, if the application with all the other factors is acceptable to the lenders criteria and there is a suitable answer for the bad credit, the lender will look favourably on the application.
For more information, please contact us on 0330 094 5876 (local rate) and we will match your requirements to a suitable commercial finance broker.
100% Development Finance
If you already own the land or building outright, it may be possible to obtain 100% development finance, the lender will value the asset and will offer funds based upon the security.
What documents should you have to apply for development finance
Your commercial finance expert will be able to guide you as to the lenders specific requirements, but it would be wise to have the following information available:
- Purchase Price/Valuation of the land or property
- Planning permissions
- Building Regulations
- Development experience
- Total Build Cost, which should include material, labour costs etc
- Contractor info, such as builders, architects etc
- Gross development value
- Duration for development to finish
- Exit Strategy
Can I Obtain Development Finance With Bad Credit
Yes, it is possible, as with all types of finance, if there is valid reason for the bad credit and the application is of good quality, a lender should still be able to offer development finance.
For more information please contact us on 0330 0945 876 and we will match your requirements to a suitable commercial finance broker.
How Much Deposit is needed to purchase Land
This very much depends on the type of land you are buying, for a residential plot, you may only need 20% of the purchase price or valuation, for other types, it may be more. Deposit may also be determined by the applicant’s credit history, assets and liabilities.
How to get a mortgage on land
Clients often say to us ‘how do I obtain a mortgage on land?’ this very much depends on the type of land someone is looking to buy, along with the financial details of all applicants.
Land Mortgage Fees
There are various fees involved with buying land, such as:
- Arrangement fees: The lender may charge an arrangement fee, which in most cases, may be added onto the mortgage. Please be aware that if you do this, you will pay interest on this until such time as the mortgage is repaid.
- Broker fee: Your commercial finance broker will charge a fee for their services, this will ensure that you receive the right advice and the right mortgage.
- Valuation fee: This will allow the lender to instruct a surveyor to value the land, please be aware that if the lender lends the funds in stage payments, a fee is payable every time the valuer visits.
- Legal fees: You will need to instruct a conveyancer to satisfy the lenders requirements. We are able to assist with a recommendation if you wish.
For more information, please call us on 0330 0945 876 and we will match your requirements with a suitable commercial finance broker.