Mortgage Insurance Calculators About How it Works
   Back | How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
   Back | Insurance
   Back | Calculators
   Back | Your Mortgage Position
Your Mortgage Position
Bad Credit
Bridging
Buy to Let
Development Finance
Self Employed
Mortgage for professionals
Lifetime Mortgages
Expat mortgages
Interest Only
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Commercial Mortgages
Property Types
Remortgages
First Time Buyers
Mortgage Declined
Offset Mortgage
Other
   Back|Bad Credit
   Back|Bridging
   Back|Buy to Let
   Back|Self Employed
   Back|Expat Mortgage
   Back|Interest Only
   Back|Income Types
   Back|Property Types
   Back|Remortgages
   Back|Other Mortgages

How to secure a long term Commercial Mortgage


How to secure a long term Commercial Mortgage
Why Revolution Brokers?

Whole of market brokersWhole of market brokers

Mortgage that suits youMortgage that suits you

On time customer supportOn time customer support

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin15 Apr 2020
    

Securing a Long-Term Commercial Mortgage 

Generally, mortgage offers to purchase a residential property come with terms of 25-30 years, but commercial mortgage terms tend to be much shorter at only 5-10 years. 

The mortgage products provided by commercial lenders are called committed facilities, which are calculated on a short-term loan basis but analysed for affordability based on the monthly repayments required over a longer repayment term of around 25 years. This identifies lower monthly repayments that most businesses will be better able to afford, and means that the lender can achieve their requisite debt service cover requirements.

Many business borrowers are not aware of the commitment period, and therefore have a shock at the end of the short-term loan period when the demand arrives for the outstanding balance!

Revolution Finance Brokers have experienced this scenario many times and would recommend at this stage to refinance and look around the market for the best offers. It is ideal to begin considering options before the end of the initial term, so if you are reaching this date then give us a call and we can start work now.

Choosing a Lender

Refinancing a Commercial Mortgage Through your Existing Lender

Most lenders offer incentives to keep your business with them:

  • Lower arrangement fees – remortgaging with the same lender usually carries lower fees, and we may even be able to negotiate zero arrangement fees
  • Valuation requirements – to remortgage an existing property, a new valuation may not be required
  • Additional fees – other costs such as legal or security fees are usually not necessary
  • Streamlined process – it is often quicker and easier to remortgage with the same lender 
 

Refinancing a Commercial Mortgage with a New Lender 

Comparing your remortgage offer with others on the market is always advisable – even if just to make sure you are getting a good deal! Other lenders might be able to offer:

  • Favourable terms – lending terms change over time, and even if your existing lender was the best option when the mortgage term began, there may now be other products available
  • Cost savings – although the initial fees may be lower to refinance with the same lender, you might be able to save more money by choosing a lower-cost long-term product 
 

How to Apply

If your business is having to consider refinancing its mortgage, is approaching the end of your committed facility period, or would like to check whether there are better deals available, give us a call today at 0330 304 3040.

Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.

Related Posts
What Mortgage Can I Get On 50k Salary In The UK?

Wondering what mortgage on 50k salary UK-wise you can get? Here's an interesting fact: the mortgage advisor typically offer between 3 to 4.5 times your annual income. This article will guide you through understanding how much mortgage you could be eligible for on that salary. Keep reading to find out more! How to Determine What Mort..

Read more 
How Much Will My Mortgage Go Up

Have you noticed your mortgage payments shifting? Interest rates are on the move, affecting how much we pay on our mortgages. This article will guide you through understanding these changes and estimating how they might impact your payments. Keep reading to find out more! Understanding Interest Rates and Mortgages Interest rates ..

Read more 
Using a Second Charge Mortgage on Buy-to-Let Investments

Using a Second Charge Mortgage on Buy-to-Let Investments It is certainly possible to apply for a second charge mortgage on buy-to-let investment properties, although it is important to calculate the costs carefully and ensure any second charge mortgage providers you choose are likely to be able to approve your application. Some appl..

Read more 

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.