| Commercial lending Guidelines |
| Loan Type |
Capital Repayment and Interest Only Commercial Mortgages. Interest Rates from 1% above bank rate, currently 5.5%. |
| Loan Size |
Minimum £40,000 - Maximum no limit |
| Loan Term |
Minimum 10 years - Maximum 30 years, repaid monthly by direct debit. |
| Loan Purpose |
Purchase, refinance, expansion of a business or a commercial investment property. |
| Borrower type |
Sole Trader. Partnership and Limited Liability Companies supported by personal guarantees of all Directors. |
| Acceptable Security |
First legal charge over Acceptable Commercial Property. Where applicable additional security may be required. The Lender may need an assignment of goodwill and in some cases, fixed and floating charges.
England, Wales and Northern Ireland. |
| Acceptable Tenure |
Freehold and long lease properties. Leaseholds must have a minimum of 55 years unexpired at the final maturity date of the mortgage. |
| Please look at our 'Residential Mortgage' Website: www.mortgagesforeveryone.com, as this will guide you if, for instance, you wish to raise commercial deposit funds from a residential property. |
| Lending |
Up to 85 % of the bricks & mortar or 100 % with additional security. |
| Income |
With or without proof of income. |
| Minimum Property Valuation |
£75,000. |
| Valuation |
Bricks and mortar valuation on all properties plus good will if applicable. |
| CCJ's / Mortgage Arrears |
Letter of explanation required, but usually acceptable. |
| Buildings Insurance |
Full re-instatement value as advised by our valuer. |
| Likely Fees |
| Lenders completion fees |
1% or 2% of gross advance on completion depending on which lender. |
| Redemption Fee |
Redemption fees may not always apply but with Sub prime lenders, between 3% and 6% of the outstanding balance within the first three years and 1% thereafter. A broker fee may be payable upon completion. |
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REMEMBER!
Commercial Mortgages For Everyone operates in a dynamic market and will always try to be flexible in its approach to lending. If in doubt, please call to discuss on 01223 291929. |
