|
|
Mortgage Loans Debt
Platinum Boarder |
|
|
|
Commercial Mortgage Rates - 2007/05/09 17:52
The interest rate for a commercial mortgage is much higher than residential loans because banks consider this type of loan high risk, as the ability to meet the repayments is dependant on the performance of the business. Therefore, the rate of interest you will be charged, after the lender has carried out a thorough assessment of your business proposal, should be in the region of one per cent and six per cent above the Bank of England base rate.
If your business has a good trading history, and the accounts show a stable performance and a well managed cash flow, then you shouldn't have any difficulties in securing a commercial mortgage.
The duration of a commercial mortgage is decided by the lender at their discretion. It is unlikely to be any longer than the standard 25-year loan common with domestic property, but it can be as short as a ten year repayment term.
|
|
Loans
