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Business Remortgages

Business remortgaging is a means of agreeing new terms on your existing commercial mortgage, or a way to release extra funds for use elsewhere.

Whether you’re looking to balance the books, expand your premises or invest in new assets, a commercial remortgage could be the next step in your business’ growth plan. Though they can be a useful means of freeing up funds, it’s worth keeping in mind that you’ll likely pay a higher interest rate, as lenders deem these types of loans a higher risk. Find out more about commercial remortgages below.
  • Remortgaging your business could free up funds to use for other ventures or to expand your portfolio

  • You may find yourself paying back more over time than your original arrangement should you release funds as a lump sum

  • You could secure better terms if you’ve already paid off a large sum from your property mortgage.

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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.

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

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. Even if you have a CCJ or a poor credit history, we’ll look at our wide range of providers to try to find the right product for you.

What can I use a business remortgage for?

Commercial remortgages can help business owners develop. There is a variety of avenues for growth that you could invest the funds in:

Computer

New office equipment

Use your funds to purchase new office equipment and tools, for new projects and even new hires.
Building

Office renovation

Renovating your office can give your workplace a new lease of life and help generate new ventures.
Van

Recruitment

Raise cash to expand your payroll when it comes time to recruit for new talent.
Staff

Expanding your vehicle fleet

Increasing your vehicle capacity can help support a growing customer base, giving you the ability to expand your business.

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