Commercial mortgage deals 'not just about interest rates'

06 July 2011

Written by David Whittaker

People looking for the best commercial property mortgage deal should not necessarily choose the lowest interest rate, according to one expert.

Writing for Peterborough Today, commercial lending manager of Norwich and Peterborough Building Society Steve Cox said this kind of financing requires the person claiming it to consider their own needs.

Some investors might wish to keep their income as high as possible and will therefore prefer a longer-term deal.

"The longer the term, the lower the monthly repayment, as capital is repaid over a longer period," he wrote for the news source.

Other individuals may want a lower loan-to-value ratio as they need to have money left over after securing the deposit, Mr Cox noted.

Finally, people who believe they are capable of making large repayments earlier than necessary will want a deal that does not incur costs or charges for doing so, the expert declared.

Pub manager John Topping recently advised those who are seeking this kind of funding to prepare full business plans before trying to find lenders, basing this on his own experiences.

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