Buying your own premises is a significant decision for a small business. A commercial mortgage may help finance the purchase or refinance a property you already own, but the borrowing needs to fit your business plans and capacity to repay. How does a commercial mortgage work? A commercial mortgage is secured against property. Owner-occupied mortgages…
Bridging finance is short-term borrowing secured against property or land. It can bridge a defined timing gap, but it needs a credible way to repay the loan, commonly a sale or longer-term refinancing. How it works The lender considers the property, security, borrower and proposed exit. Interest may be paid during the term, retained from…
Development finance supports building, conversion or refurbishment projects. It is usually arranged around a defined project and repaid from sales or refinancing, rather than the routine income of an established property. How it works Lenders assess project costs, expected completed value, experience and the exit plan. Funds may be released in stages as work progresses,…
A buy-to-let mortgage finances property intended for letting. The decision should consider net rental cash flow, ownership structure and longer-term plans, as well as the quoted mortgage payment. How it works A lender assesses the property, deposit, rental income and borrower. Some facilities are interest-only, meaning the capital still needs to be repaid at the…
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