Typical Fees & Costs involved with a Commercial Mortgage
If you are buying a business that is directly linked to property eg commercial property, shop, business premises, warehouse, factory, hotel or retail outlet. Then a commercial mortgage may be best for you.
Below are the typical fees and costs involved when taking out a commercial mortgage:
- Arrangement Fee - This fee may be charged on specific products and is either payable in advance, added to the loan or deducted from the advance on completion. It covers the administrative expenses incurred whilst processing an application.
- Whether purchasing or remortgaging the Lender undertakes a valuation of the property to ensure it provides adequate security. The charge is borne by the borrower and increases exponentially with the valuation/purchase price.
- This is a penalty charged when the loan is repaid in full within a set period. Usually it applies on a pro rata basis when capital repayments are made outside of the agreed monthly payments. Many Early Repayment Charge periods are linked to those of offers, such as Capped, Discounted or Fixed rate periods. However, some mortgage rate have extended Early Repayment Charges which tie-in borrowers even while they are paying the Lender's SVR. Also known as: Early Redemption Penalty (ERP); Redemption Penalty.
- Legal and professional fees - these can include solicitors/conveyancer fees, insurance and site surveys.
At North Mortgages our Mortgage Experts will take care of everything on your behalf. Remember, we source insurance from the whole of the market, so you know your getting the best deals available and all tailored to suit your personal circumstances.
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