Commercial Mortgages

A commercial mortgage is the term used to describe lending secured by a commercial building or property. As for residential mortgages, the borrowings can be in the name of individuals or entities such as Companies or Trusts. A commercial loan is limited to borrowing for business purposes such as buying a commercial building (the business of being a commercial landlord) and purchasing a farm (the business of farming). As the interest rates tend to be higher than those for a residential mortgage, it usually makes sense to attempt to borrow funds with residential property as security in the first instance if possible.