A mortgage broker can do a lot more than a lender and you will save money, even if the mortgage broker charges a fee to remortgage. The Mortgage Broker do charge a fee, but with this you are guaranteed to get the following:

• An adviser that works for you, and advises on the best mortgage products
• Access to 130 Lenders and 25,000 Mortgage Rates – meaning you could immediately save money
• Advice longer term and a dedicated service
• 24/7 Mortgage Monitoring – before and after your remortgage – if a better rate is available, we will tell you.
• Search & Compare the market – if your current lender is the best rate, then we will tell you and you won’t pay a fee.

Can you remortgage early is a common question. The answer is Yes, you can remortgage early. 
Whether you want to or not, depends on your individual mortgage circumstances and timing is important. Most lenders allow you to start looking around 3 to 6 months before your current deal ends. Remortgaging early may involve early repayment charges (ERCs) but if the new rate is worth it, it may be worth considering to make a saving overall.

A mortgage can be switched pretty quickly. Typically though, a remortgage can take anywhere between 2 to 8 weeks. If you are looking in advanced of your rate increasing (possible up to 6 months before) then your mortgage broker can lock in a rate, and monitor the market right up until your remortgage date to check for the best deals.

It also depends on your lender, property type and complexity of your income and requirements. The Mortgage Broker will keep everything moving smoothly and update you every step of the way.

Your lender will need to assess the current state and value of your commercial property. Is your property in good condition or in need of repairs? What is the current market value of your property? Where is the property located and will it attract tenants? These are important considerations and will impact how much you can borrow against your property.

Another important factor is how much rental income your commercial property is generating (if any) as well as how stable and consistent that rental income may be.

Your lender’s evaluation will also include checking your creditworthiness and the health of your business generally. They will look at your credit rating, cash-flow, profits and debts.

Is it necessary, or a good business decision? What are your reasons?

Contacting an expert in commercial property remortgages can help you to understand the process and its advantages (or potential disadvantages) for your business. Contact The Mortgage Broker for clear and helpful information.

Check the terms of your current mortgage, the value of your property, and gather any business documents, etc.

Our friendly broker team can help you with this too.

Submit all required documents with your chosen lender.

A professional assessment of your business and your commercial property will be made by the lender in order to judge your eligibility for a commercial property remortgage, and the terms that you will receive.

The mortgage agreement needs to be carefully checked by a professional to ensure everything is correct.

If you are completely happy with the remortgage conditions, then sign the agreement. Then the last step is…

Your existing mortgage will be paid off by your lender, and your new remortgage will begin.

Being able to free up any equity you may have available can be extremely useful for your business, allowing you to pay off some debt, make repairs or improvements to your commercial property, make business investments, and more. Remortgaging to raise capital can be a valid reason to remortgage commercial property.

If you decide to remortgage your commercial property, this can be a prime opportunity to negotiate the terms of your new mortgage. This could mean a lower interest rate, a longer repayment period, or a different type of mortgage, for example, changing from a fixed rate to a flexible rate. It may be possible to obtain a mortgage that is specially tailored to suit your particular business requirements.

A commercial property remortgage can be tax-deductible, offering a reduction in the overall borrowing of your business.

Deciding to remortgage a commercial property can bring with it certain costs, such as: legal fees, an arrangement fee, fees for the property evaluation, and potential broker fees. You can also face a penalty for early repayment if your existing mortgage has an early repayment penalty clause written into it.

Yes, this can be a ‘double edged sword’. Although receiving a longer repayment term may mean monthly repayments are lower, it also means you end up paying more interest over the loan term. However, if you keep the term the same, this won’t happen.

A lender may have more stringent criteria for remortgaging a commercial property. This will most likely mean property and business evaluations and other financial checks. 

Before embarking on the path of applying for a commercial property remortgage it is worth making a realistic assessment of current market conditions. Volatility in the market is an important consideration and it’s sensible to weigh up the pros and cons before coming to a decision. Is this the right time to remortgage? Is it feasible and beneficial or will it have a potential negative impact on your business at this time?

Again, consulting with an expert, such as The Mortgage Broker, can help provide you with the information you need to make an appropriate judgment call.