Commercial Mortgage Calculator
This commercial mortgage calculator helps you to compare different rates and mortgage terms.
The instructions below are quite straightforward, but remember to switch to "mortgage calculator". Once you have entered the loan amount and mortgage rate you only need to consider the loan term.
Commercial mortgages can be taken out for anything from 10 years up to 30 years, you can use the mortgage calculator to consider the difference 5 years can make to your commercial mortgage.
Commercial mortgage rates
As a general rule you can expect banks and building societies to charge around 0.5% to 4.0% over bank of England base rate.
Other lenders can charge anything from 1.5% up to 6% over base rate. Bear in mind that some lenders will base their loans on LIBOR or FHBR.
You can use the commercial mortgage calculator to work out how much difference the higher rates will make to your commercial mortgage.
Commercial mortgage set up charges
In addition to the mortgage interest there are other charges to consider when comparing costs. Don't forget to factor in the set up (or arrangement fee) and any early redemption charges. Also remember to consider the broker charges, 1% of a £300,000 loan is £3,000!
Commercial lenders will expect you to pay all valuation fees, your own legal costs and very often the legal costs of the lender.
If your lender is offering the chance to add the set-up fees to your commercial mortgage you can use the commercial mortgage calculator to work the difference. You might be surprised!
