Commercial Mortgage Glossary of Terms
Minimum level for the loan
This is the minimum threshold or amount a commercial mortgage will lend to you. Commercial mortgages are not typically available for loans of less than £20,0000, where alternative funding solutions, for example a personal loan, may be more affordable.
Period of grace
Under certain circumstances some lenders may be flexible regarding late or delayed repayments. It may be possible to negotiate with your lender a payment holiday or lower repayments for an agreed period.
Personal guarantee
If your business is a limited company, your commercial mortgage lender may request from you a personal guarantee. The seeks to provide additional security for the lender, particularly where your initial deposit may be lower than normal.
