Bad credit commercial mortgages «

Bad credit commercial mortgages


If you’re in business or thinking of setting up your own business but you’ve been unfortunate enough to have found yourself in bad credit with a poor credit score and unable to obtain finance easily, it could still be possible for you to obtain a commercial mortgage. There are specialist providers who offer bad credit commercial mortgages, also known as sub-prime commercial mortgages. Even if you have a county court judgement (CCJ) against you or are subject to an Individual Voluntary Arrangement (IVA), there are still options available. Another problem for many self-employed people is trying to prove their income. However, this too needn’t be an obstacle when trying to obtain a commercial mortgage.

Bad credit commercial mortgages are flexible and can be arranged for any purpose, just like a standard commercial mortgage. Whether you’re a sole trader, partnership or limited company, there are products to suit your needs – whether this means purchasing commercial premises, expanding your business or refinancing to raise business cash. Commercial mortgages are also available for any business type – whether it’s a restaurant, hotel, factory, shop, warehouse or web design company.

There are several benefits to having a commercial mortgage as opposed to renting premises. First and foremost, mortgage repayments are often cheaper than rent. Also, there are certain business tax benefits to owning rather than renting a property. And remember that buying any property is always an investment for the future – and, if you need to raise business cash at some point down the line, you can always tap into the equity that has built up within your commercial property. Another advantage of remortgaging business premises is that it can be easier than taking out a business loan, especially if you have a bad credit history.

In terms of interest and repayment, commercial mortgages work pretty much in the same way as residential mortgages. You can choose from various interest deals, such as fixed rate, capped rate or standard variable rate, and you can opt for either capital and interest repayments or interest-only repayments. However, with commercial mortgages – and bad credit commercial mortgages in particular – the interest rates tend to be higher and the repayment terms tend to be shorter, as commercial mortgages are considered a bigger risk to the lender than residential ones. Nevertheless, there are so many different commercial mortgage products on the market that it should be possible to find a great deal to suit your needs. Speak to various mortgage lenders to find out what sort of deal you could get – or, even better, find a specialist independent commercial mortgage broker who can do all the hunting for you and often has access to a wider range of products at better rates.

 

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