By Gary Chown, Director, Commercial Banking, NatWest Bank, East SussexGary Chowen, Natwest Platinum Business Magazine

In Issue 1, we provided a short summary of funding options available to SME’s in the marketplace. In this issue we have focused on commercial mortgages and have set out below the key features together with a recent case study. This type of finance is provided by all the main commercial lenders as you would expect.
Flexibility is the key and there are a range of options to help you tailor the finance to meet your specific
preferences. You will need to consider this business investment carefully and review the pros and cons of an acquisition.

We would recommend that you talk with your professional adviser in this regard. In terms of what Nat West can offer, you can expect the following from our commercial mortgage:

  • A choice of loan – Borrow from £25,001 upwards.
  • A choice of interest rate options – Our fixed, capped and variable rates allow you to tailor your repayments to suit your own circumstances.
  • No arrangement fees – Our participation in the Funding for Lending Scheme allows us to offer our loans with no arrangement fees.
  • Flexible repayments – The option to take a capital repayment holiday should you need to re-direct your finances. In this event, interest will still be charged and your future monthly payments may increase.
  • Flexible repayment term – Repay the loan over a period of up to 25 years.
  • Expert assistance – Whether you’re moving for the first time, moving to larger premises or simply switching mortgages for a better deal, our experts are on hand to help.

Loans are also available for owner occupied business premises. Early repayment charges may apply depending on the product selected. By owning your own premises you’ll be making a significant investment in your business and you could benefit from any potential increase in its value, while releasing yourself from the constraints of renting.

Recent commentary from the Bank of England stated that they intend to keep interest rates low for up to three years, subject to the level of UK unemployment. With a combination of low interest rates and no arrangement fees currently available, now could be the perfect time to consider buying your premises. We also offer flexible commercial mortgage and repayment options for businesses looking to purchase premises or develop and expand existing premises.

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