commercial mortgages
Commercial mortgages are special mortgage
for commercial property. Ordinary investors,are most likely to
come across commercial mortgages when buying a commercial
property within a Self Invested Personal Pension or Sipp.
In this case, your Sipp provider may have a
lending facility itself via its own bankers or refer you to a
mortgage broker. Alternatively you can select a commercial mortgage
lender of your choice, but it must be a commercial, rather than a
residential mortgage.
Commercial mortgages are normally more
expensive than residential mortgages, typically Bank of England
base rate + 1- 3 per cent, but the rate of interest you are offered
will depend on the size of the loan, your creditworthiness, the
type of property and the percentage of the loan to value on
the property.
Bank of Scotland is active in this area but
most banks offer commercial mortgages and if you have a good
relationship with your own bank, it may be willing to give you a
preferential rate.