COMMERCIAL MORTGAGES

Start Ups & Trading Business.
Commercial Investment.
Bad Credit Accepted.
Up to 75% LTV.
1 Years Accounts Accepted.
Short Term Leases Acceptable.

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COMPARE MORTGAGES

Applying for a mortgage can seem daunting. It can sometimes be a complicated and lengthy process and the choices can seem overwhelming and hard to comprehend. We understand and we are here to help you…

At the Money Hub we can advise and help you choose the right mortgage. We can even help you secure funds if you have a bad credit history. We will help you to understand the conditions of your mortgage, giving you a full detailed breakdown along with the lenders details. Naturally, the most important thing is to make sure you will be able to afford the repayments.

Commercial Mortgages

MORTGAGE LENDERS

(not all lenders displayed - not specific to your personal circumstances)

Customer Reviews

FREQUENTLY ASKED QUESTIONS

How we work?
By making an enquiry we will contact you to discuss your needs and outline if we can be of assistance. We will then request a copy of your credit file for a qualified adviser to review. After a full review of your credit profile the adviser will discuss this with you, provide advice and discuss possible quotations.

If you wish us to proceed and get a ‘Decision in Principle’ we can do so. Once we have a decision from the lender we will discuss and email you a formal quotation and outline our process going forward.
What sort of bad credit do you accept?
We have lenders that will accept clients who have had County Court Judgements (CCJ’s), Defaults, Missed payments, Debt Management Plans (DMP), Individual Voluntary Arrangements (IVA) and discharged bankruptcy. The general rule is that any bad credit needs to be registered over a year ago.
Do I need a deposit / equity?
Yes. You will need a minimum of a 10% deposit however, this is does depend on the level of bad credit that you have, so for example, if you have had CCJ’s/mortgage arrears in the last 2 years you may need to have 15%+ deposit. If you are buying a property through a shared ownership scheme we have lenders that do not require you to have a deposit.
How long does a bad credit mortgage take to arrange?
Once a Decision in Principle (DIP) has been done the typical arrangement times from mortgage application to offer is 1 month. Specialist bad credit mortgages do take more time when compared to standard high street mortgages, due to the extra due diligence that is required on these cases.
I have a low credit score – does that matter?
No. We have lenders some of whom are high street Building Societies that will lend to you if you simply have a low credit score, due to not being on the voters roll or not having much active credit. If you have a low credit score as a result of bad credit (CCJ’s/defaults/missed payments etc) we certainly have specialist lenders that can help.
I have been declined by other brokers – can you help?
The key to this question is why you were declined. We provide an advised service, so if we cannot help you now, we will explain why and provide advice as to what you need to do to be able to get a mortgage in the future.

Commercial Mortgages

Commercial mortgages often exist to pick up where business loan requirements become of a higher value. Lenders will offer secured and unsecured loans to businesses but once a higher loan amount is required, often above the £25,000 level then the costs of securing the loan against a property, be that personal or business, or securing Director guarantees, the sensible and cost effective option is to look at a commercial mortgage.

It is normal for a commercial mortgage lender to take up to 70% of the loan value as security for themselves. This is often by way of the commercial property itself. On occasions where the 30% initial payment is not available some commercial mortgage lenders will look at other property that has equity to cover the shortfall. This may be a Directors personal property.

Commercial mortgages are usually available for periods between 3 and 25 years and are not usually considered to be viable or cost effective for periods less than 3 years. Other options for shorter term borrowing include bridging loans. Most commercial mortgages are variable rate with the rate percentage quoted over LIBOR. A good comparison on a personal mortgage would be a tracker mortgage that tracks base rate and is adjusted up or down according to interest rate fluctuations.

Interest rates on commercial mortgages are usually risk related. This means that the lender will look at each commercial mortgage application and asses a number of things that include the risk factor and exposure to the lender. There is a standard risk profile used by many commercial mortgage lenders and this is used to asses each application individually.

The amount available to borrow for a commercial mortgage varies with each application and the purpose of the loan. For example, buying an existing business with stock and goodwill elements making up part of the valuation and loan requirements will not be considered as strong and safe as an owner occupied building or commercial property with a stronger level of deposit.

Valuation fees are an essential element to a commercial mortgage application. Commercial properties by nature are often unique and individual and require an in depth valuation report that can start circa £500.

Arrangement fees for commercial mortgages are usually in the region of 1-2% of the loan amount and some lenders may charge what is called a commitment fee that covers all of their preparation work in the event that the loan is not accepted by the applicant for whatever reason.

To summarise, commercial mortgage applications are taken on individual merit and each case is assessed sympathetically towards the individual and their requirements. Please contact our team of specialist advisors for more information on commercial mortgages and we will answer any questions that you may have.

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