A business mortgage is simply a business loan secured against your business property. The mortgage business is recovering from the credit crunch, but there are still plenty of opportunities for taking out a business mortgage.

You may be considering a buy to let mortgage to rent out a second property, or purchasing a business premises. This can have a positive impact on your business cash flow as it opens up subletting opportunities to increase your income, and mortgages for business should give you lower payments than renting a business premises.

The drawbacks are obviously finding the deposit, proving to a commercial lender that you can maintain the repayments for 20 years (or the length of the business loan), and the drain it will put on your business finances. Also, it won’t be as easy to move premises if your business expands or you wish to relocate.

Business mortgage rates and business loan calculators

Finding the best mortgage rates are imperative for a business. A lower interest rate means lower repayments. As with most financial products, you can find a business mortgage calculator online to calculate your repayments.

The most common mortgages for business is a repayment loan – equal payments throughout the loan, some of the payment going towards repaying the loan and the rest towards the interest that accrues. Commercial lenders can also offer a business mortgage with lower equal payments monthly and a final large payment, an interest only business mortgage with interest only payments and a final large payment or an endowment type business mortgage.

Business mortgage rates

Your business banking advisor or any of the commercial financing companies can advise you on the best business mortgage rates for your business.Keep an eye on the commercial mortgage rates to work out the best mortgage offers to ensure you can get a cheap mortgage for your business needs. Having a secured business loan will fundamentally be cheaper than an unsecured loan.