Commercial mortgages are available for a variety of purposes:

 

HMO (houses in multiple occupancy)

Offices and office complexes

Retail outlets

Development land

Factories and warehouses

Specialist buy to lets for flats under one freehold title

Owner occupation business premises

Investment purposes

Residential portfolios and individual buy-to-lets

 

As your intermediary, we work hard to understand your business which in turn ensures that we are best placed to identify and explain the most cost-effective finance options available to you as an existing or potential business owner.

 

Commercial Mortgages are arranged by introduction only & commercial mortgages are not usually regulated by the Financial Conduct Authority.

 

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Self-Build Financing

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Self-build mortgages are aimed at people requiring finance to build their own property or those wanting to renovate an existing property. The money is typically released in stages as the build progresses with the mortgage lender (or a representative) visiting and assessing the project at the completion of each stage.

 

The funds are then released either before or after each stage depending on the type of borrowing. The stages vary with each lender but generally cover:-

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• Purchase of land

• Foundations

• Wall plate level

• Wind and watertight

• First fix, inc. plastering

• Second fix to practical completion

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Bridging Loans

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Bridging loans are used for short-term financing requirements, or when money in larger sums is needed quickly. Bridging loans are usually repaid within twelve months as the annual rate of interest is typically higher than standard high street rates – thus making bridging finance unsuitable for long-term loans.

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Developers and investors have been using bridging loans for many years now, allowing them to take advantage of market conditions or undervalued investment opportunities. Being able to purchase a property quickly offers numerous advantages to the purchaser, such as negotiating the best price and beating competitors to the deal.

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Other instances where bridging loans can be of unique value include:

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• When buying a house without finalising your own house sale

• While building a home to be sold upon completion

• When looking to redevelop or refurbish a property

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The bridging loan rate is the monthly or daily interest charged while the loan is outstanding. The rate can be determined by many factors such as whether the bridging loan is closed (a guaranteed exit route exists for repayment of the loan at a specific time) or open (a less firm exit is being used such as the sale of a property). Other aspects could be the size of the loan compared with the value of the property (this is known as Loan to Value or LTV), the type of security (residential or commercial property) and if the applicant has an impaired credit history.

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Typical rates of interest range from 0.50% - 1.50% per month, but these vary significantly from lender to lender.

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Arrangement fees for this type of finance are often higher than a standard mortgage, to reflect the risk to the lender and the speed the facility can be provided. These are typically between 1.5% – 3.0% of the loan and therefore this type of finance requires careful consideration.

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Also, there may be valuation fees (to ascertain the value of the security offered) and security fees (to legally assign the security to the lender).

The maximum loan to value available is usually 75% but again this will vary considerably depending on the lender and if you have any existing finance on the property being offered as security.

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Please contact us if you would like to explore this option or require further explanation.