If you are in business and have adverse credit, then an adverse commercial mortgage could be just what you need to keep your business growing. Just as with a residential mortgage an adverse commercial mortgage is designed for people who have had credit problems but who want to borrow money to expand their businesses. These can be small or large businesses.
Business owners, especially if they are small business owners, can get into financial trouble just as easily as normal consumers but they still need to be able to run their businesses if they are to survive the financial downturn. That’s where an adverse commercial mortgage comes in.
Many of the factors to be considered are the same as with a residential mortgage. An adverse commercial mortgage provider will look at the adverse circumstances that might affect a business. The adverse commercial mortgage lender will consider whether the business owner has had County Court Judgements (CCJs) or arrears, and whether there might be gaps in the accounts that mean that the borrower does not qualify for a prime commercial mortgage. An adverse commercial mortgage may also be available on a self certification basis.
Capital Raising With An Adverse Mortgage
An adverse commercial mortgage can also be used to raise capital, just as residential mortgage holders remortgage to get the money to repay debt and for other purposes.
An adverse commercial mortgage can be available in several loan to value ratios. In many cases, lenders offer 85 per cent loan to value but business owners may be able to qualify for 95 per cent loan to value or even 100 per cent loan to value under certain circumstances.
An adverse commercial mortgage is available from some lenders for business owners who want to borrow on bed and breakfast properties, guest houses or hotels, farms, offices, pubs, bars, flats, houses, factories, warehouses, industrial units – in fact, almost any kind of commercial property that a business owner might be interested in.
Whether a company is a sole trader, limited partnership or a bigger business the adverse commercial mortgage means that bad credit is no longer a barrier to business growth. Some commercial mortgage lenders will consider applicants who have had discharged bankruptcies or satisfied IVAs as well. There are a number of lenders who specialise in this area but they don’t tend to be on the high street.
You can find a lot of information on the internet by doing a search for ‘adverse commercial mortgage’ but there’s an even better way to find a good deal. Just as residential mortgage applicants can find a good adverse credit mortgage through a broker, this option is also available to commercial mortgage applicants.
When you approach a broker, be sure to inform the broker about any potential areas of difficulty, such as IVAs, bankruptcy, arrears, CCJs and accounts, so that the broker is fully informed before making a selection. There are several providers on the market, so your broker will have little difficulty in finding a suitable adverse commercial mortgage for you
