Commercial Mortgages how can they help? In today economic environment where experts in the financial sectors, economists, politicians, banks and building societies they all seem to have a different deliberation on the future of the UK economic situation, in both the long and short term. For example, are we about to enter into a major downturn or are just a long road of slower growth, know body knows? So why keep faith with a Commercial Mortgage, when even though the interest rate is being reduced by the bank of England the end interest rate we are getting as business customers its increasing due to the credit crunch?

The main benefits of Commercial Mortgages are really still the same as they have always been in that you retain ownership of your business and your business premises. You can raise equivalent advances by using other typical investment channels and even in today market, companies I have found included general finance centre still can offer very competitive rates on commercial mortgages and business finance products.

There are a whole heap of financial terms out there that im sure everyone isn’t aware of or fully understands, here is a select few and you can browse through the rest at your own leisure here

APR

This stands for Annual Percentage Rate. Any firm that lends money is required by law to quote the APR. Introductory rates do not include arrangement fees you may be charged and also don’t reflect any higher rate of interest that your borrowings will ultimately revert to. The APR takes into account the interest on a loan plus and additional charges making it easier for you to compare products. In general, the lower the APR the better the deal.

 

Base Rate

Base rate (sometimes called the repo rate) is the interest rate set by the Bank of England which determines borrowing and savings rates.

 

Commercial Mortgage

Commercial Mortgages are used to purchase a business property or going concern, for the expansion of existing business premises or for property development. Commercial property includes shops, public houses and farms.

  

Equity Release

This is the process in which a new larger mortgage or an existing mortgage is increased to release some extra funds.