Commercial mortgages - anyone know anything about them?

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soloequestrian

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Originally posted in NL, but I think it will disappear off the page before anyone answers.....

There's a nice farm for sale near us, so have just been investigating commercial mortgages. Apparantly you have to have MORE of a deposit for one than for a residential mortgage, even though the mortgage will effectively be providing it's own income. How does that work?!?
 
They're not nearly as good as residential mortgages. WE tried to buy the garage that we rent a couple of years ago, and the bank wanted an extra £10k because we were the tennants - if we had bought the garage with someone else as the tennants we wouldn't have had to pay it - how does that work! We never ended up buying it...
 
You used to need a third deposit on a commecial morgage, but now its nearer 50% , and will probaly be over that with costs etc , thats IF you can get one, they arent that easy to get at the moment, good luck anyway
 
For a commercial mortgage you can normally get between 70/75% of the purchase price or value, which ever is the lower. Term anything up to 25 years. More importantly you will need to prove serviceability. Commercial mortgages are still easily available as long as you can prove you can service the debt. Don't be fooled by what you read in the paper - loans are available, so if you think its affordable go and talk to a Bank. Sometimes they will even lend a bit more if the serviceability is there. Good luck
 
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