Will Mortgage House Accept my Home as Security for a Business Mortgage Loan?
Yes, Mortgage House, like traditional lenders, will accept your home as security for a business loan. Residential properties are the most widely accepted form of security because of their broad appeal and high demand. As long as your home is in a good location and is zoned residential, you should have no problem using it as security for a business loan. However, you may also be required to provide a General Security Agreement if you choose to borrow from a traditional lender.
What is a General Security Agreement?
When you apply for a business loan, you are generally required to provide some residential property as loan security. Despite this asset and security, most traditional lenders will also ask you for a GSA over the property and all of your business assets in case of loan defaults. This agreement is to ensure that the lender can recoup the debt.
However, by using the brokers at Mortgage House, we may be able to argue against a GSA or a Guarantee and Indemnity as long as the equity in your home is enough to cover the debt.
Why You Should Use Mortgage House
Business and commercial loans are much more complex than home loans. So simply using your home as security is not enough. You want to find lenders who offer competitive loan terms and interest rates that provide flexible lending policies with less restrictive terms. Our mortgage brokers are experienced and specialised. We understand the complexity of commercial loans and also know how to find you the best loan that can offer you the best deal.