06-12-2007
New advice offered on commercial property purchases
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Rather than relying on the existing market for commercial mortgages, small to medium-sized enterprises (SMEs) should explore other channels, it has been claimed.
Harry Katz, the principle at advice firm Norwest Consultants, believes that SMEs should approach other avenues when looking to fund the purchase of a commercial property, such as through the use of remortgaging facilities, with a home used as security.
Mr Katz also advised that it may also be viable for an SME to purchase a commercial property through a pension fund. "If you have enough equity in your home, you're better off remortgaging your home rather than going to get a mortgage from a bank or another lender," said Mr Katz. "Because it's commercial, they think they can get away with charging you practically anything," he added.
In related news, data released by Yorkshire Bank shows that 19 per cent of businesses would be willing to take more risks if mortgage payments were not a concern.