Property Loans

A debt-based funding arrangement between a business and a financial institution for the purchase of property.

While you have a variety of options for a property loan, the most obvious is naturally the standard commercial mortgage, for which both fixed and variable rate deals are available.

Why should you take out a commercial mortgage?

Commercial mortgages give you the assurance of no sudden or unexpected hikes in rent, although there is the possibility of your monthly repayments going up if you have a variable rate deal.

Practical Application Example

“ Mortgages for commercial property can work in much the same way as those for residential properties, with the monthly payments covering both the loan itself and the associated interest. Interest-only deals - where the monthly payments cover only the interest, rather than the loan - may also be available, but once the mortgage term is over, the remainder of the loan must be repaid. ”