When It Comes To Finding Commercial Finance Go With A Specialist
A specialist website will be able to search the UK commercial loan marketplace for the best deal for your circumstances. Often they are able to get the lowest rates of interest though negotiation with lenders who specialise in the type of loan you are looking for. A specialist will also be able to get you finance in the shortest time possible because lenders will go all out to deal quickly with a broker.
You will you get the right type of commercial finance by going with a specialist and it is important to remember that a commercial mortgage is not like a residential one. There are many different factors that are taken into account when wanting finance for commercial reasons. The lender will take all these factors into account and this is what will determine how much you pay.
The individual's different circumstances will mean that, unlike a residential mortgage, the rate of interest you will pay will be based on what you are going to do with the money you borrow and an assessment of the property in question relating to the loan. After these factors and others have been taken into account the rate will be set out. As with any loan the amount of interest you pay will be a percentage above the base rate. In the majority of cases this can be between 1.5% and 2.5%/
Usually when taking out commercial finance you are able to take out a loan from one year onwards. Of course the duration of the loan will have to be based on many different factors. Factors that will have to be taken into account are the size of the undertaking and the nature of it. The majority of loans taken this way will be limited to interest only borrowing unlike the choices for residential mortgages.
When getting things off the ground, then a specialist in commercial borrowing will go through your proposal with you which can save an enormous amount of time. This can be of particular benefit when it comes to getting the property appraised for the loan. They will also be able to help and give advice when it comes down to loan to project costs. This can often be confusing so advice is essential, the rate for perceived gross total development values vary with each project. While they do vary typically rates fall are 70% to 75% of the purchase prices and build costs.
The majority of brokers will work alongside you from start to finish of the project and although there will be brokers costs to pay you can still save. It is thought that around 80% of those who borrow commercially do so with the high street lender, yet they could be saving a lot of money with a specialist. While the majority of people do not like to admit they need help then it comes to something as costly and important as commercial finance getting as much advice and saving as much as possible is essential.