You will usually be able to choose from several different types of commercial mortgages
, which include interest-only mortgages, capital repayment mortgages and hybrid commercial mortgages.
You will also be able to choose between commercial variable rate mortgages and commercial fixed rate mortgages:
- Commercial Variable Rate Mortgages – The interest rate changes according to the Bank of England base rate, as determined by the lender.
- Commercial Fixed Rate Mortgages – An agreed interest rate remains fixed for a set period (usually 2 to 5 years) before switching to a variable rate.
Interest rates vary significantly from one lender to the next and can shift at any time. As a general guide, most applicants can expect to be offered commercial mortgages with interest rates of between 2.2% and 5.5%.
Comparing the market in its entirety with the help of an independent broker is essentialto ensure you get the best possible deal at the lowest rate of interest.