Why not look at a coalition with a new lender?
In the 5 year and 10 year terms that companies commonly fix the rate of their Commercial Mortgage a lot can change – it’s a long time in business as well as politics!
Now could be the ideal time to look at whether you could improve the terms of your mortgage:
- Re-mortgaging provides the opportunity to look at releasing capital, which in the current environment could provide critical cashflow to your business.
- The value of your property could have increased which will reduce the Loan To Value (LTV) of the loan, and possibly improve the rate available to you.
- The financial and trading position of your company could have changed as your business has grown over the years – you may be able to access a higher tier group of lenders now, and a better interest rate.
- The income on investment properties may have increased, which in turn may improve the terms available to you on your Commercial Mortgage.
A business owner should carefully consider all the pros and cons of a re-mortgage – Essex Commercial Finance can provide you with all of the options available to you so that you can make a balanced decision of what would be best for the company.
Why should you consider if a re-mortgage is the best solution for you?
- Your existing fixed rate deal is coming to an end or has ended – don’t leave yourself to revert to your lender’s Standard Variable Rate (SVR). Even if the best outcome for you is to remain with your existing lender, they will likely have lower interest rate options for you.
- Your business’s position has improved since you first took out the mortgage – this could make you eligible to a higher tier of lenders, who in turn may be able to offer you a lower rate deal – reducing your monthly costs.
- Your commercial property may have increased in value, meaning that your existing mortgage represents a lower LTV than when you first took it out – you could release working capital into your business by re-mortgaging at your original LTV level.
- If you’re a commercial landlord, your lease income may have increased since you initially took out your Commercial Mortgage, and this in turn could open the door to improved mortgage terms.
Benefits that you could access with a re-mortgage are lower monthly payments, a reduced cost of finance with a lower rate and accessing cashflow for the business for working capital, overheads, equipment and growth.
Our ethos at Essex Commercial Finance is to partner with you to secure the most suitable finance – so we will guide you through the possible pitfalls of re-mortgaging while looking at all of your options. We will help you weigh the costs involved of making the change, and make sure that you base your decision on the full facts.
Like all financial decisions for your business, re-mortgaging your commercial property finance needs to be carefully researched and planned – which we will help you with. If it is the right option for you then it could deliver significant benefits to your business.
Mark Grant, Commercial Finance Consultant.