Commercial Remortgages

What is a business remortgage?

A business remortgage is a type of loan secured against the value of your commercial property. It’s usually offered at a lower interest rate than traditional commercial loans with flexible repayments, allowing you to pay off existing debts to take control of your finances, or grow your business through expansion or new equipment. However, they typically include higher interest rates than traditional private mortgages you would have on your own home or buy-to-let property.

By remortgaging your business property, you can also secure a better deal on your monthly repayments, allowing you to reinvest the extra funds as you see fit.

How does a business remortgage work?

A commercial remortgage can help you get quick access to the funds you need to take your business further. Secured against your property, commercial loans are often offered at a lower rate than other types of loans, giving you the flexibility to choose how to invest the money. If you’ve been on the same repayment plan for some time, switching lenders could also secure you a better deal.

However, if you cannot keep up with the payments, your commercial property will be at risk. Therefore, it’s important to evaluate your financial needs to ensure this is the right move.

Disadvantages of a business remortgage

Though remortgaging your premises can help improve your commercial venture, there are several features you should consider before agreeing to any new terms.

• Remortgaging is a form of secured loan. This means, should you fail to pay your monthly payments for a set duration, the lender reserves the right to take ownership of your business property.
• Should you release money from your property as a lump sum, you could end up paying back more than this sum over the course of repayments.

Business remortgage types

There are two types of business remortgages, depending on the type of financial assistance you need. They are:

Owner occupier mortgage

This type of commercial mortgage covers those who want to purchase or remortgage property to run their operation. This also covers part-commercial, part-residential properties.

Commercial investment mortgage

This product is designed for businesses that want to purchase commercial property to rent out, such as office blocks, retail units or warehouses. The rates will reflect your circumstances and will also depend on the property, tenant, length of lease and your credit history.

How much can I borrow?

With Norton Finance, you get the flexibility to choose the amount you want to borrow and the repayment plan, with terms available from £10,000 to 20,000,000.

Commonly asked questions about business remortgaging

Applying for a commercial remortgage is a big decision. Before you get a quote, read our frequently asked questions below.

Remortgaging details

• How long are the repayment terms?
  You can set the repayment terms to suit your financial needs, with terms ranging from one to 30 years.
• Are there any loan fees?
  Unlike banks, we receive a commission from the lender once your loan has been completed and often a broker fee may be charged dependent upon the product offered.

Do I need a valuation?

On most products, you will need a valuation before your loan is accepted so lenders have an idea of your property’s current market value.

Applying for a business remortgage

We understand a business sometimes needs a little help getting on the track to success. We’ll look at our wide range of providers to try to find the right product for you.