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
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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. ”
