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SUPER-FAST DECISIONS | NO OBLIGATION | PROPERTY FINANCE
Commercial Mortgages
Whether you need to buy a new building and expand or are looking to buy your first premises, our team can provide you with tailored finance to suit your business.
What is a Commercial Mortgage?
Much like a residential mortgage, a commercial mortgage is a long-term loan that is arranged to buy or refinance property for commercial use.
Commercial mortgages are term mortgages secured against commercial property or semi-commercial property. There are no set rates, which means that the lenders review every application to asses risk levels.
Why choose Us?
Our team of brokers work with a vast network of commercial mortgage lenders, meaning we can source the best rates and best fit for your business. We keep you up-to-date along every step of the way, making sure you are fully informed of every part of the deal.
Key Benefits:-
100% Funding available*
Owner-occupied mortgages with 25%-30% deposit*
Rate options to suit your business
Indicative terms within 24 hours*
Residential Bridging Loans
What is a residential bridging loan?
Residential bridging loans are short term, interest-only loans generally used to help you meet a pressing financial need when dealing in the property market. Applications are often decided on the value of the property and your exit strategy, more than your ability to meet payments.
When would you use it?
Broken property chains. When a buyer pulls out, your offer on your next home and the deposit can be put in jeopardy. A Bridging Loan can tide you over until your home is back on the market and under offer once again.
Buying a second property. Before selling the first.
Auctions. Usually, once an offer is accepted at an auction and a deposit has been paid, there is a 28-day period to complete the purchase. But at auctions you might go in without pre-organised nance. A Bridging Loan can be organised so you can pay for the house within the 28 days and give yourself time to sort out a longer term loan.
Short lease. It could also be used if, for example, you wanted to buy a property with a short lease. You could use the Bridging Loan to buy the property, then add value by extending the lease. This would provide a valid exit strategy.
Refurbishment projects. You can use it a Residential Bridging Loan to refurbish a property before full capital is available.
Amount Available
£100,000 – £25 million
Duration:
Up to 36 months for non-regulated loans, 12 months for regulated loans*
Interest Rate
From 0.44% per month*
Development Bridging Loans
What is a development bridging loan?
It can be used for office refurbishments, converting residential space into commercial property, or to help fund a planning application on a piece of land or property.
It can cover everything from a single unit project to larger multi-unit schemes. Development finance is often used for Build-to-Let projects. It is also useful to cover sales period funding, providing a business income during the time between completing the development, and letting it out or selling it.
When would you use it?
It can be used for office refurbishments, converting residential space into commercial property, or to help fund a planning application on a piece of land or property.
It can cover everything from a single unit project to larger multi-unit schemes. Development finance is often used for Build-to-Let projects. It is also useful to cover sales period funding, providing a business income during the time between completing the development, and letting it out or selling it.
Amount Available
£100,000 – £25 million*
Duration:
Up to 36 months
Interest Rate:
From 0.44% per month*
Commercial Bridging Loan
What is a commercial bridging loan?
Similarly to a Residential Bridging loan, Commercial Bridging Loans are used when there is a gap in financing that needs filling quickly. For a Commercial Bridging Loan, the overall use of the property has to be more than 40% commercial. For example, if you were buying a retail unit with a at above it, the retail unit’s value would have to be more than 40% of the total value. For landlords, or a landlord company, the exit strategy would usually be to refinance the loan onto a Buy-to-Let Mortgage – typically after doing some renovations to make the property suitable for rental. For commercial units that are bought using a Commercial Bridging Loan, the exit strategy usually involves refurbishing the unit then selling it or refinancing onto a conventional Commercial Mortgage.
When would you use it?
They can be used when you’re buying a new business, commercial property or part commercial/part residential property. In fact, they can be used for most commercial property purchases apart from house boats.
These could include brownfield sites before planning approval is given, run down commercial premises that are hard to get mortgages on in current conditions, or for funding a new small business or start-up.
Like Residential Bridging, Commercial Bridging Loans can also be useful when a property chains is broken, and at property auctions.
In fact, as long as you can provide a valid exit strategy, the money can be used for a variety of business reasons from providing your business with working capital, to financing tax liabilities or covering short term cash-flow issues.
Amount Available
£100,000 – £25 million*
Duration:
Up to 36 months
Interest Rate:
From 0.44% per month*
Property Investment Loan
If you are looking to develop or expand your portfolio, make the most of new opportunities with tailored and dependable financial solutions built around your individual business needs.
Residential
Lenders will generally require the rental income to cover between 100% & 125% of the Investment Loan payments if the mortgage is paid at an interest rate of 5.5%. To determine how much, you could borrow you take the annual rental amount, divide it by 5.5% then divide the answer by 100% / 125%. For example, with an annual rental income of £22,000 your calculation would be (£22,000 / 5.5%) / 125% = £320,000 (where the lender is looking for 125% Cover). Some Lenders will sensitize the annual rent to allow for voids and costs.
Investing through a limited company (SPV)
If you are considering investing through a limited company (SPV), you might be under the impression that there is a minimum term a company must be trading. However, there is no such requirement. In truth, you can get a mortgage arranged before setting up an SPV. A certificate of incorporation will be required before the mortgage can be completed.
You, as director, are the lender’s primary focus. They will be looking to ensure you can meet the terms of the mortgage. Your income, credit history, investment experience, job, and various other points are examined in the same way as a personal mortgage.
Some lenders will require Directors to give personal guarantees, meaning you will be personally obligated to fulfill the company’s debt. This would be the difference in the value of the property against the amount owed.
Commercial Investment
Similar to Residential Investment, lenders will generally require the rental income to cover between 100% & 150% of the Investment Loan payments.
In addition to the other area’s covered under Residential Investment, a key area for Lenders will be terms of the lease to tenant (rental / remaining term and break clauses) and tenant quality.
HMO’s (Houses of Multiple Occupancy)
As with Residential & Commercial Investment, lenders will need to be comfortable with individuals experience in this sector.
Additionally, due to this sector generally seeing higher costs (refurbishment etc.) then lenders tend to sensitize rental to a greater extent when considering the level of Investment Loan.
Key Benefits:-
100% Funding available*
No upfront fees*
Rate options to suit your business*
Independent advice*
Property Development
We provide tailored financial solutions for residential development projects across the UK. Speak to one of our expert advisers today about how we can help you to develop your business.
What is a Property Development Loan?
Property Development Finance is used to finance the conversion, construction or refurbishment of properties. It is usually set up over a short-term to finance the project only during the build.
We are experts in presenting development projects in the best light to lenders helping you to achieve the best terms. When packaging a development case, we always look to address the following:
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Experience – For a lender the developers experience is key to the deal. We go to great lengths to explain the background experience of our client to lenders. If you are a first-time developer, then we will need to concentrate on the strength/ experience of your contractor.
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Business plan – We provide working business plan templates for you to complete. These break down costs, show timescales for each stage, and realistic end valuations, which lenders are expecting to see. We even sense check the figures for you!
How a Property Development Loan can be used
If the land has planning permission, most lenders will require a borrower to put down a 40% deposit, some will accept 35%, towards the land.
Most lenders will appoint a professional surveyor. They will visit the site both at the outset and then prior to each major stage. This is to ensure the work has been done to the required standard and approve the release of the next tranche of funds to complete the following stage.
There are several lenders who will fund 100% of the build costs, normally where they advanced no more than 60-70% of the gross development value (GDV) of the project at any time.
Once a development is completed, the development loan will either be repaid through the sale of the units or by arranging a term mortgage. The term mortgage is based on the final gross development value (GDV) of the project.
Subject to the estimated rental income (according to a professional opinion) being high enough, a developer should be able to release up to 70% of the GDV of the project. This should repay all the funds used in the project and potentially release some profit.
Key Benefits:-
Up to 100% Finance Available*
Specialist Broker Team
Rates from 0.45% PM*
