Commercial Mortgages and Property Investment Loans

Despite reduced property costs and lower interest rates in recent years, securing funding support to acquire commercial property for occupation or investment has become increasingly challenging.

The economic downturn coupled with issues in the banking sector has reduced appetite for commercial and investment property funding by many of the banks, and other traditional lenders.

Indeed, many lenders have been forced to reassess existing property lending exposure due to the fall in property values, with the resulting reduction in available security falling outside lending policies.

Property finance lenders have become far more stringent in their assessment of credit criteria with lower available loans to values (LTV) and requirements to evidence an increased ability to service the debt.

B2B recognises the ‘gap’ in the market and has developed a panel of independent commercial mortgage and investment property lenders to build alternative funding solutions.

We also continue to develop an ongoing day to day working relationship with all of our banking partners to support their customers with whole or part solutions which may fall outside current lending policies. Our banking partners also compliment our independent facilities by ensuring us access to bank products in support of property funding applications on behalf of our clients.

We can assist with funding for commercial, and semi commercial property for owner/occupier businesses, and experienced investors.

We can also arrange funding of residential investment properties for experienced investors.

Our lending panel also has the capacity to accommodate the following types of properties and business sectors:

Industrial Units and Warehouses

Hotels and Guest houses

Offices

Residential Buy to Let

Public Houses and Restaurants

Retail Shops (with or without living accommodation)

Investment Properties

Professional Practices

Care Homes and Day Nurseries

Private Schools

Housing Associations

Purchase, Transfer of Equity, Refinanace, Fundraising, Refurbishment and Improvements

Features & Benefits:

Naturally, terms available and associated pricing will vary from lender to lender on a case by case basis and the following features & benefits are for general information purposes as a guide for your personal assessment.

Owner / Occupier Mortgages:

Fixed or variable repayments
Up to 75% Loan to Value (LTV)
As little as 110% payment (debt service) cover required (stressed)
Capital and interest repayment terms of up to 30 years

Part capital repayments to reduce debt service burden during the loan term:
- 3 year terms with only 5% capital repaid
- 5 year terms with only 7.5% capital repaid
- Up to 30 year term with only 70% capital repaid thus reducing capital repayments by up to 30%
No Requirements to transfer the core banking (unless preferred)
Offset Mortgages available
Minimal or no covenants required
Loans from £25,001

Property Investment Loans:

In addition to ‘owner/occupier’ mortgages we have access to flexible investment property options for experienced investors which include all of the features under ‘Occupier Mortgages’ above plus:

Interest only payments available on investment loans of up to 25 years (max 65% LTV)
Lending periods exceeding the maturity or ‘break-clause’ of the tenancy agreement can be considered

Offset Mortgages (Investment and Owner/Occupied)

Borrowers with ‘cash on deposit’ may benefit from an ‘Offset Mortgage?

The lender takes into account the balances held in your savings or specified current account when calculating the amount of interest charged against your mortgage.

These business balances can be used to offset up to 30% of the mortgage loan so instead of earning interest (at a lower rate) against your business credit balances they are offset against the balance of the mortgage account thus reducing the overall interest cost.

We have worked hard to develop a robust ‘stand-alone’ commercial mortgage and investment property lending portfolio to bridge an increasing ’gap’ in the commercial market and to compliment traditional funding offered by the banks.

We always recommend that business owners and property investors seeking funding for property approach your bank relationship manager and your traditional mortgage lenders for support.

On the occasions that they are unable to assist on mutually agreeable terms ask them to recommend a trusted commercial mortgage broker.

We hope they will recommend B2B Cashflow Solutions…

Contact Us for enquiries and guidance on borrowing against existing property investments and property acquisitions.