A fast commercial mortgage is easy to get but be prepared to pay a little extra.
Competition among financial organisations and banks is the main factor that in recent times has led to commercial mortgages becoming much easier to obtain. Difficulties traditionally associated with a poor credit history once meant that an application for a commercial mortgage might well have been rejected.
Nowadays however bad credit history is simply perceived by the lender as carrying a higher risk and that higher risk can be offset by an appropriate increase in the level of the commercial mortgage interest rate. The choice of a lender is very important since there can be quite wide variations in terms and conditions and rates of interest. Your credit history and the period of repayment are factors that immediately affect the terms and rates of a commercial mortgage.
As a general rule it is probably preferable to deal with one of the ‘High Street’ banks even at the expense of a slightly higher interest rate. Failing this, the finance companies will almost certainly provide you with the funding you need but it is advisable to ‘do your homework’ on the lender of your choice. Competition is fierce and they usually advertise their ‘best’ deals. This does not necessarily mean these deals apply to you.
Commercial mortgage rates vary according to your personal circumstances and requirements whereas the ‘headline rate’ that is advertised is the very best they will do and is reserved for those with clean credit and straightforward requirements. It is therefore essential to establish exactly the terms applicable to you.
Any contract that sets out the terms of lending must be carefully read and if there is any doubt about its meaning or implications it should be taken to a lawyer or at least a reputable commercial mortgage broker. Remember that you will be bound by the contract that you sign.
There are many facilities available that will give you information about lenders, their reputation, their products and generally whether they are a fair and reliable company to support you for the duration of your loan – and beyond if you should choose. Make use of the Internet, newspapers,the trade magazines as well as word of mouth reports and questioning the company personally on any points you are unsure about.