![]() ![]() Given that commercial mortgages can be more complex than home loans, you can expect to pay several thousand pounds. You will also most likely be asked to pay your own fees and those of the lender. ![]() Legal Fees: Just like buying a home, you’ll likely need to use a solicitor who deals with commercial property before you can get your mortgage. If you are charged a fee, just make sure it’s upon successful completion. Some brokers don’t charge a fee, because they will be paid by the lender directly. Typically, this would be around 1%, but again this can vary significantly. If you are charged such a fee, it will usually be used to offset any arrangement fees if you go ahead, but will be non-refundable if you don’t.īroker Fees: If you use a commercial mortgage broker, they may add a fee on top of the fees listed above. It is usually paid on completion and can be rolled into the loan.Ĭommitment Fee: Some lenders may charge you an upfront fee of around 0.25% of the loan value just to apply, because of the work involved. These can include:Īrrangement Fee: This is usually a fee of 1-2.5% of the loan value (often lower on loans over £1 million). However, it excludes some fees you may end up having to pay. The calculator above is designed to give you a quick overview of how much a commercial mortgage might cost. Unlike homes, several banks will lend for up to 30 years, including up to 10 years at a fixed interest rate. Repayment Period: This is the period of time over which you plan to repay your mortgage. Most variable rates will be linked either to LIBOR or the Bank of England Bank Rate. Generally speaking you won’t find rates less than about 2.5% with most loans coming in somewhere between 3% and 7.5%. ![]() However, the interest rates can vary widely depending on your trading history, credit score and the type of property you wish to purchase. Interest Rate: Like home mortgages you can either get a fixed or variable rate. On the plus side, the more you put down, the lower your interest rate is likely to be. Unlike homes, most lenders typically require at least 20-25% down ( Loan to Value of 80% or less), so keep that in mind when looking to buy a property for your business. If you need an amount less than this amount, your best bet is looking at an unsecured business loan.ĭeposit Amount: This is how much money you’re going to put down. Generally speaking, most banks and lenders won’t lend less than £25,000 with some having minimums as high as £100,000. Purchase Price: This is simply how much the property you want to purchase costs. This tool is not a measure of your eligibility for a mortgage.Ĭlick To Compare Commercial Mortgage Rates Commercial Mortgage Calculator Fields Explained Monthly Costs: Repayment (£) Interest Only (£)ĭisclaimer: The calculator above is for illustrative purposes only and does not accurately reflect all borrowing and repayment costs. Can I Get An Interest-Only Commercial Mortgage?.How Much of Deposit Do I Need For A Commercial Mortgage?.Commercial Mortgage Calculator Fields Explained. ![]()
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