#Free mortgage calculator full

You can have a free, no obligation discussion with one of our advisors who will be able to tell you what your options are. Frequently Asked Questions How can I get a commercial mortgage? Please use our commercial mortgage calculator as often as you like to help you decide what commercial mortgage option would be the best for your business. However, as independent brokers we find our customers the facilities that offer them the best possible deal. We work with a lot of lenders who offer different rates, calculate interest in different ways, and have different fee structures. Our calculator has been created to provide you with an approximate guide to the costs of a commercial mortgage. A shorter mortgage term will reduce the total amount repaid, and a longer term will increase the total amount repaid. This assumes that the interest rate remains the same throughout the entire mortgage term and that no additional capital repayments are made, and all monthly payments are paid on time.

#Free mortgage calculator full

Total Amount Repayable: This figure illustrates the total amount you will actually repay if the commercial mortgage runs the full term. The lenders also like investment properties where there is a long lease in place with a good tenant.

The property owner running a profitable business from the security property is usually most favourable.

Who will be using the security property - The lenders will consider who will be using the commercial property.

If additional security is available then then this can possibly be used.

The Loan to Value - For purchases a deposit of between 25% and 40% will be required.

This is because of the costs of running the mortgage account, a higher interest rate maybe required on a small facility in order to cover the costs involved and for the lender to make a profit. Small commercial mortgages will usually have a higher interest rate. The larger the loan then generally this may mean a lower interest rate. The amount of money being borrowed can affect the interest rate on a commercial mortgage.

Mortgage amount required, size of the loan - Larger commercial mortgages command lower interest rates!.

If the owners or directors are unwilling to offer a personal guarantee, even a limited one, this can be looked upon unfavourably by a lender.

Personal Guarantees (PGs) - Whether or not a personal guarantee is available may well affect the interest rate and terms of the loan.

Credit history of the business - They will look into the credit history of the business, and also the credit history of the company directors and business owners.

Debt level - Commercial mortgage lenders will look to see the level of debts that a business has.

They like to see growth and a steady profit each year.Ī business that has decreasing profits or is making a loss will obviously be course for concern.

How successful a business has been in making a profit - Lenders will look at previous accounts and projections to see if the business is making a steady profit.

New businesses tend to be considered higher risk because when compared to established businesses a higher proportion of new businesses fail. For example a video library or cigarette vending machine manufacturer (ban on smoking in public places).

Unless of course it is a business that the lender feels may have a limited future. How long the business has been trading - Businesses that have been established longer will be considered less risk. Interest rates for commercial mortgages don’t tend to be set based on Loan to Value, as they often are with many residential mortgages.Ĭommercial mortgage interest rates and fees will be based on a consideration of the following factors: Commercial Mortgage Interest Rates Interest RateĬommercial mortgage interest rates range from 2% over base rate upwards