What Can A Business Mortgage Offer Me?

The term business mortgage is used to cover many types of lending secured on property, but for a business rather than a person or family buying a home. This can cover commercial mortgages, buy-to-let mortgages and raising finance for business purposes.

Commercial mortgages are very similar to household mortgages except that the property being purchased is a commercial one, such as a factory, shop or warehouse. The mortgage will be secured on the property but the lending ratios are higher, i.e. you may be able to borrow four or even seven times the business's projected yearly income.

Buy-to-let mortgages are used for a property that will be rented out, rather than one that your business will use for its own purposes. Usually the deposit required will be higher than for a domestic mortgage, and the lender will take into account the projected rental earnings before approving a loan.

When using a business mortgage to raise finance the loan is normally taken out against a property that the business already owns to raise finance for whatever purpose the business requires it for, such as helping the business expand, paying off debts and so on.