A commercial remortgages may be arranged for a wide range of different purposes. If the value of the property is worth more than any charges registered on it, (the mortgage) then the difference between the two figures is known as ‘the equity’. Just like with a conventional residential mortgage, you may raise finance by releasing the available equity within the business premises.
Commonly, raising finance through a commercial remortgage will be utilised in order to expand an existing business. These reasons may include:
* Raising finance for refurbishments/improvements of the property.
* Raising finance to replenish stocks, update machinery and technology, recruit new staff
* Restructuring the business finance account and repaying business debts and outstanding bills and invoices.
For many, a commercial remortgage can also offer a chance to switch to a more competitive interest rate - this could be especially relevant if your credit rating has improved since you took out the original mortgage. A commercial remortgage can be arranged over terms from 5 up to 30 years. Loans may be granted up to 85 per cent of the value of the property with amount available from £25,0000 up to £10,000,000.
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