Commercial mortgages available at 100% LTV

07 December 2010

Written by Simon Whittaker

Commercial mortgages can be acquired by some companies with a loan-to-value (LTV) ratio of 100 per cent, it has been reported.

Writing for StockMarketsReview.com, financial adviser Jim Wright explained doctors, vets and solicitors are classed as professional businesses and are eligible for such deals.

However, most firms will be able to secure a commercial mortgage of 70 or 80 per cent LTV and will have to make up the rest.

Acquiring a loan with a 100 per cent LTV means the lender will pay for the entire property but businesses may need to cover valuation and legal fees, the expert noted.

The best way for companies to learn how they can acquire a commercial mortgage cheaply, including by using pension funds to guarantee payment to the provider, is to speak to a financial adviser, Mr Wright advised.

Experts at the State of Play - Property another year on seminar held recently said there are signs of improvement in the commercial real estate sector, according to the Business Desk.

Find out more on our commercial mortgages and how we can help you achieve your aims - enquire online.