A Guide to Commercial Mortgages
- Price: £3.60
- Published: March 2016
- Type: Business Information Factsheet
- Format: PDF
A commercial mortgage functions in a similar way to a residential mortgage; it is any loan secured against the collateral of commercial property or land that is not the borrower's own residence. A lender, such as a bank, provides a lump sum that the borrower combines with a down payment to purchase the property. Using a variety of repayment structures, the money and interest is repaid over the term of the mortgage.
This factsheet explains what a commercial mortgage is, and describes the most common types of mortgage. It considers the advantages and disadvantages of commercial mortgages, explains how lenders assess applications, and provides information about costs and fees. Hints and tips and sources of further information are also included.