Prime Commercial Loans
Typical LTV’S Prime Commercial Loans - Typical LTV’S
| 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% above base rate up to say 6% 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.
