Raising finance against for a new or existing property? Find the right development finance or commercial mortgage deal.
If you are looking to purchase or re-mortgage property or land for commercial use Finpoint can help. Property finance also covers a number of investment options and is geared towards supporting experienced property professionals in the areas of:
- Residential property finance
- Commercial property finance
- Student accommodation finance
- Mixed-use property finance
This type of finance is typically offered in the form of a commercial mortgage and can be used for several purposes including:
- Buying business premises finance
- Extending existing business premises
- Making residential and commercial investments
- Developing property
Typical repayment periods extend from 10 years up to a maximum of 30 years. Some lenders offer commercial mortgages with shorter repayment periods – this is usually referred to as bridge finance.
Whatever the plan, commercial mortgages do offer some important advantages over rental of property or land. However, before you take this big step consider carefully the advantages and disadvantages of these loans.
All interest rates quoted are indicative only as rates will only be confirmed based on the risk profile for each deal. Risk category associated with the deal. This is based on primarily debt survivability and security available for the loan
Advantages of Property Funding
You can keep ownership of your business and your business premises.
Commercial mortgages are not subject to rental fluctuations, giving you a more stable business planning environment
With typically lower interest rates than other unsecured loans, they offer lower monthly costs and can be fixed to help you more accurately manage and forecast your finances
Commercial mortgage interest payments are tax deductible, this can contribute to reducing your business’ annual tax overheads
Improved cash flow management and, providing the lender agrees, you can sub-let some of your business premises.
Things to be aware of…
You need a decent sized deposit, which represents money that could be used in other business operations
It can be harder to move your business if you own the premises. With property rental, you can often negotiate ending your rent agreement or find another business to take up your tenancy
If you have a variable rate mortgage, you can leave yourself vulnerable to interest rate increases
You are responsible for your property including maintenance, insurance and security
If you lose value on the property, this will reduce your capital