Base rate commercial mortgage deals 'set to increase'

08 August 2011

Written by Steve Olejnik

People looking for commercial mortgages may wish to consider acquiring a fixed-rate deal.

Writing for the Peterborough Evening Telegraph, commercial lending manager of Norwich and Peterborough Lending Society Steve Cox said analysts predict base rate mortgages will begin to rise, although this might not occur until next year.

"While base rate may be low, it does not offer the certainty of cost that is available from a fixed rate," he explained.

Mr Cox asserted it is "sensible to at least consider" these options, although each individual has different circumstances.

Investors with continual income streams and long-term borrowers generally benefit from fixed rate commercial mortgages, although many of these have early repayment charges that can prove to be quite expensive, he declared.

Mr Cox had previously said in the same publication that lower-rate commercial property finance solutions are not necessarily the best choice for all individuals, noting that each person must consider their own requirements and analyse the products available carefully.

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