Is there such a thing as a "Fixed Commercial Mortgage"?

Zim_Flyer

Hello everyone, we are buying some holiday apartments next year and wanted to know if there is such a thing as a Fixed Commercial Mortgage? As for the first few years it will be a big help to know what we will have to pay every month especially as interest rates will be going up in the next few years?

Any help on this would be much appreciated.

Thanks in advance.

happybroker

Yes there is. Some commercial lenders will also let you start off on interest only for a short period too if it is going to help with cash flow.

Commercial finance is rather more complicated then domestic lending and is very often underwritten by a real person as opposed to "the computer says no". As a result the way in which a proposition is pitched to a prospective lender can make a big difference so it could pay dividends to get some specialist help.

You can also negotiate rates more often on commercial lending, especially if there is more than one lender being approached.

Zim_Flyer

happybroker wrote: »

Yes there is. Some commercial lenders will also let you start off on interest only for a short period too if it is going to help with cash flow.

Commercial finance is rather more complicated then domestic lending and is very often underwritten by a real person as opposed to "the computer says no". As a result the way in which a proposition is pitched to a prospective lender can make a big difference so it could pay dividends to get some specialist help.

You can also negotiate rates more often on commercial lending, especially if there is more than one lender being approached.

That is great news Happy broker, thank you. Would you recommend any lenders that would provide a Fixed Commercial Mortgage?

Thanks in advance.

Trollfever

As most lenders of this nature have more than enough commercial property lending on their books, you will need a very convincing business plan and cashflow forecasts.


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happybroker

Zim_Flyer wrote: »

That is great news Happy broker, thank you. Would you recommend any lenders that would provide a Fixed Commercial Mortgage?

Thanks in advance.

most lenders will offer a fixed rate though they do tend to be qite a bit higher than variable. Some are better than others but they vary from area to area as the decisions are made by people.

If you have a mortgage broker then he/ she should be able to help you. If it's not one of the high street banks you end up with then watch out for the fees, they can be pretty eye watering!