March 27th, 2014.
I’m buying a new factory: How do I get a mortgage?
If you haven’t bought property in a while then jumping back into it can be very confusing. Lots of things have changed in the last couple of years and if you haven’t kept on top of it then it can be very daunting.
Trying to getthe best deals on commercial mortgages can be difficult, but these tips will point you in the right direction:
Visit a Broker
Independent brokers can be an absolute godsend when it comes to getting a commercial mortgage for a factory. They have access to all the lenders in the market and are able to find out who offers the best finance solution for your needs. In addition to this, they can handle all the paperwork for you and tailor the application to your specifications ensuring that you receive a bespoke package.
While there is a cost associated with using a broker, they will be able to save you time and money in the long term by doing all the leg work for you and getting you the best deals. This often works out to be the ideal solution for many businesses, especially those who need a quick turnaround on their applications.
Visit Your Bank
Going straight to your bank for a loan is a pretty easy option, as they know you and have a good understanding of your financial situation. In addition to this, as an existing customer you are normally entitled to special benefits such as lower rates and having legal fees paid for you.
While this might seem like the easy option, you may not be getting the best rates on the market and the product might not match your needs. This could lead to problems and additional costs down the road, so make sure you read all the terms and conditions before agreeing.
Do Your Own Research
The internet is an excellent way to find out where you can get the best deals from. It can take quite a bit of time, but going to each bank’s website and seeing what their going rates are is a fantastic way of finding out what you should be paying.
It is important to note though that just because their website says that the APR is, for example, 4.6% this is not necessarily the figure that you will receive. You will need to meet the lenders in person with a tailored application in order to get a quote specific to you.
One big problem you will come up against here is that lenders will not tend to highlight the fact that they favour certain types of factories over others. For example, some banks may only provide loans for factories within the food industry, while others only want to deal with car factories. This can waste a lot of time at the application stage, but it is something that a good commercial mortgage broker will know by heart.
To learn more about applying for a mortgage to buy a factory give our friendly team a call today, we’re here to help you get the best financial package for your needs.