Commercial mortgage 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 BTL 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

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

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