Commercial mortgages are ideal for sole traders and limited companies alike, with LTV up to 80% and terms of up to 30 years. A first charge is typically required and eligibility routed in business profitability, and its payment serviceability.
If you’re looking to expand your business, fed up with paying high rental costs, or you are considering purchasing an investment property, a commercial loan may be the right solution for you. There are a lot of things to consider when apply for a commercial loan, but that is where our expertise can help advise, guide and professionally present your business case to find the best lender for you. Here are some things to consider:
For owner occupiers, the trading history is key for lenders assess the serviceability of the loan. Generally, lenders want to see 3 years of filed accounts for high-street lenders and 2 years for the challengers.
The property use must also be considered. For instance, should areas of the property be let to other occupiers, the lending criteria changes from owner occupier to BTL, which will impact on LTV and rates.
Lenders perception on the desirability & market stability is very important. Portfolio over exposure to a particular location could reach the “concentration limit” where your portfolio may becomes unstable.
Choosing fixed, variable or blended rates is a matter of circumstance. For serviceability, having a known monthly cost is important, however this choice can impact the amount and speed of your equity growth.
The costs of taking a commercial loan can include, arrangement fees, legal fees, and valuation costs. As these fees can get in to the thousands, it’s important to factor this cost in to your calculations.
Interest Rates are generally fixed against the base rate or the LIBOR (inter-bank lending rate). The amount of security or equity will impact on the rates whereby cheaper rates are available at lower LTVs.
Needless to say, commercial mortgages are complex products with considerably more moving parts than their residential counterparts. Fine-tuning the balance between the deposit, business cash flow, interest rates and costs, requires a sophistical understanding of the products, bank culture and underwriting.
With the breadth of our panel of lenders and our expertise in making these adjustments, we will be able to present your business case in a concise, clear minor packaged in the exacting format that each lender requires.
Click to arrange a Discovery Call today! We will call you back, at a time that suits you, to discuss your new exciting project and how we can find suitable funding for you.
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Stephen will be taking over from founding member, Paul Kalinauckas, who retired at the end of March. He has been finance director and a member
We want to learn more about your project and how we can help find the right funding for you. This initial call will kick things off and gather the necessary information to begin approaching to lenders.
