Commercial mortgages can be arranged on virtually any property type for the sole or principal
occupancy by the client. Maximum loan to values (LTV)
against properties vary according to the style of building, build material, content
and use of the property. Traditional brick built offices for example would, in principle,
attract a higher LTV (up to 80%) than a steel framed industrial unit (65% - 75%).
It is possible to further increase maximum LTVs should your client choose to sub-let
part of their own trading premises by way of a formal lease agreement. The
additional rental income will be considered when assessing the client's ability to make repayments.
Mainstream or Status lenders will ask for 2 -3 years' full
trading accounts, 3 - 6 months' bank statements and a full asset and liability profile
for the borrowing entity and possibly individual partners or directors as appropriate.
Typical interest rates depend on the LTV, but start
from around BBR + 2.99%. However, finance rates and lending terms will depend on
the client's financial position.
Self Certification lenders require a completed application
form together with address and identity verification only. Maximum LTV currently
60% - 65% of either a 180 or 90 day sale figure. Rates start from 12.9%.