Commercial lending criteria

We are currently only accepting commercial business from:
  • NACFB registered intermediaries
  • FCA mortgage regulated intermediaries who are already registered with us as introducers of residential or buy-to-let mortgage.


Lending criteria

We will lend to

  • Sole traders
  • Partnerships, excluding LLPs
  • Limited companies.

Minimum loan

The minimum loan is £50,000.

Maximum loan

The maximum loan is £500,000.

Loan to value (LTV)

60% for capital and interest or interest-only.

Term

Minimum five years. Owner occupied – maximum 25 years; commercial investment – maximum 25 years, subject to terms of the lease.

Tenure

Both freehold and leasehold are acceptable. If leasehold, the minimum required unexpired term on a lease must be at least 85 years from commencement of the mortgage.

Margins

4% above the Society's commercial mortgage rate for loans with an initial LTV of 50% or less and a margin of 4.25% where the initial LTV is between 51% and 60% inclusive.

Arrangement fees

Usually 2% but negotiable.

Early repayment charges

Apply for the first five years only; 10% annual overpayments allowed during this period.

Procuration fee

Usually 50% of the arrangement fee but may be varied by arrangement, payment automatically made within 10 working days of completion with no requirement to submit an invoice.

Security

First charge on commercial premises.

Legals

Applicant's solicitors to be used on a dual representation basis wherever possible.