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Prime Commercial Loans

Typical LTV’S Prime Commercial Loans - Typical LTV’S

All outlines are subject to various proviso’s regarding quality of property
and applicant/certainty of income/rental income and credit history etc.
 
However as an overview the following are general overviews;

SECTOR
Prime overview
PRIME INCLUDES
Agricultural, ie./Horticulture 60 – 75% Farms, Nurseries etc.
Professionals 100% Solicitors/Vets/Architects
Healthcare 60 – 75% Nursing Homes, Rest Homes
Factories/Warehouses 70 – 75% Industrial Units
Hotels/Pubs, Restaurants 60 – 75% Guest Houses
Post Offices, Shops 70 – 80% Offices
Investment Property 70 – 85% All types of property

Focus On

Prime

OVERVIEW

  • No cheque returns in last 6 months.
  • No adverse data – e.g. mortgage arrears or CCJ’s.
  • Can prove income from trading accounts, rental income or salary slips.
  • Lenders generally finance goodwill.
  • Freehold generally required.
  • Typical repayment period – 15-25 years. Rates start from 1.5% above base rate up to say 5% above.
  • Can potentially obtain up to 100% with additional security
  • Please use as a guide only - each commercial application is unique – as is the property etc so - always call to discuss.
  • Trading accounts are key - either the business being purchased or being operated now – three years full accounts are best.
  • Affordability is always the issue.

Tips

  • Ask for the property particulars if buying.
  • Ask for the old valuation if refinancing.
  • Ask for 12 months mortgage history if refinancing.
  • Ask for 6 months business bank statements (and 6 months personal bank statements if possible).
  • Does the client want an interest only period?
  • Always be clear on the repayment source.
  • If a business plan is available – obtain a copy.

Good news – we have in house lenders in the office every day waiting for your applications.