Over recent weeks, the property market has taken its first steps towards normality, with house sales and investments able to begin again.
Due to this, lenders and banks across the market have been unveiling a range of new commercial mortgage products. This includes certain but flexible mortgages, with a five year fixed rate but only two years of early redemption penalties and access to fixed terms at a margin of c.2.5%. These new products have unlocked a range of opportunities for property investors around the country.
A leading lender in the market is now providing finance for deals between £100k to £5M per property, with terms available for between 5 to 25 years. These products support businesses and individuals that wish to acquire commercial premises for the purpose of their own occupation and trade or on an investment basis.
What are the key features of this product?
The terms available vary depending on the purpose of the purchase.
For occupation and trade:
- With loan sizes from £100,000 to £500,000, the lender can provide loans of up to 85% LTV for max 25 years.
- Between £500,000 and £1m, you can gain access to loans of up to 80% LTV for max 20 years.
- For loan sizes between £1m and £2.5m, the lender can supply loans of up to 75% LTV for max 15 years.
- Between £2.5m and £5m, loans of up to 70% LTV for max 10 years.
For investments:
- Between £100,000 to £500,000, the lender can provide up to 75% LTV for max 20 years.
- For loan sizes between £500,000 and £1m, you can gain access to up to 70% LTV for max 15 years.
- With loans between £1m and £2.5m, the lender can supply loans of up to 65% LTV for max 10 years.
- Between £2.5m and £5m, loans of up to 60% LTV for max 5 years.
The lender requires loans to be secured as the 1st legal charge, and the property you are planning on investing in must hold the appropriate planning consent for commercial use. Extra due diligence will be carried out when assessing serviceability.
Finance 4 Business
We have lenders active in the market that can support you with purchasing a property for commercial purposes. You don’t have to wait – if you wish to discuss any cases with our team of experts, get started today.
If you would like to find out more about the right commercial mortgage product for you, contact one of our expert advisers by calling 0121 309 0444 or emailing enquiries@finance-4-business.co.uk.
