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
We will lend to:
- Sole traders
- Partnerships, excluding LLPs
- Limited companies
Minimum loan: £50,000
Maximum loan: £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.