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: £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

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