Anyone who’s looking into purchasing some sort of commercial property will need to understand business mortgages. Whether you’re purchasing property to start a business or you just want to make money on a real estate investment, you’ll need a business mortgage to handle the purchase.
Businesses are divided into different subtypes. “Professional” businesses—which include veterinarians, doctors, solicitors, etc.—are often offered a 100% mortgage. These complete mortgages put the business itself against the loan; you won’t deposit any money. There are certain fees involved with these types of mortgages, so you should look into the different options before making a decision.
Most businesses qualify for a 70-80% mortgage deal. In this instance, you pay the remainder of the property’s cost. You need to be sure that you have the funds to accomplish this; there are a number of ways to go about this, and it all depends on your means and your preferences. You could use some of your pension, release equity, or request a business overdraft, for example.
Because this is a major financial decision, it could be advisable to discuss your plans with some sort of adviser before making a final decision. Objective outsiders with experience in the field will give you sound advice that may greatly benefit you in the long run. Be sure that you have researched your options and are fully prepared for any expenses you might need to cover before diving into a business mortgage.