Security may be required. Product fees may apply. Over 18s only. Subject to status, business use only. Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it.
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Fixed Interest Rates
A fixed interest rate gives you security that your repayments will not increase over your agreed term.
When interest rates are low, a fixed interest mortgage allows you to secure the low rate and benefit from lower repayments.
With our commercial mortgage product, you can have the rate fixed for up to 15 years, meaning you know how much you will pay on a monthly basis.
Fixed rates are usually higher than variable interest rates, meaning repayments will be greater when the two are compared directly.
Although, they can protect your business from the volatility of the financial market or other situations where stability is more valuable.
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Variable Interest Rates
A variable interest rate is affected by the financial market, meaning it can increase as well as decrease.
Smaller repayments thanks to the lower introductory rate when compared to a fixed rate.
If commercial real estate equity to rises in value quickly, or you are planning to repay the mortgage fast, it could save you money.
As variable rates are affected by the financial market, there is a risk of uncertainty in how the rate will change with time.
The rate may increase your monthly repayments, although it can also fall over time, meaning you end up seeing a reduction in your commercial mortgage repayments.
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Variable interest rate borrowers: Changes in the NatWest Bank base rate will affect the amount you need to pay to fully repay your loan. If you repay your loan from an account with NatWest or via Direct Debit, we will automatically adjust your repayments to reflect changes in the NatWest Bank base rate going forward (or, wherever possible, let you know if we are not able to do so for whatever reason). If you repay your loan via standing order from an externally banked account, we will be in touch to let you know the next steps required to adjust your repayments accordingly.
What happens when the agreed rate term finishes?
When your agreed fixed or variable rate period comes to an end, we will happily discuss your options. For most NatWest mortgages, the rate will go to our SVR (Standard Variable Rate), unless you decide to remortgage to a new rate.
You value stability and want predictable payments
Unaffected by fluctuations caused by the financial market
If your biggest concern is stability and predictable repayments, a fixed rate could be the answer. It’s not exposed to the NatWest Bank base rate or the financial market movements that affect variable rates. You know how much you pay on a monthly basis, and can fix the rate for up to 15 years.
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You value potential lower payments but understand the risk
Interest rate affected by fluctuations on the financial market
If you believe the interest rates will remain stable, or even see a decrease, a variable rate could be the perfect choice for you. You need to take the risk of rates going up into account, as that is a possibility with a variable rate.
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Commercial mortgage factsheets
Thinking about Business premises?
There are several factors to consider before you decide on your business premises. We could help with the decisions and suggest ways you could finance it.
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Understand commercial re-mortgaging
Commercial re-mortgaging is a refinancing method for mortgages secured against commercial real estate. Find out more about commercial re-mortgaging with us.
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NatWest Commercial Mortgage
Owning your own premises could be a great way of growing your business without the constraints of renting. Find out more about commercial mortgages.
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