Comparing commercial mortgage lenders through ABC Finance Ltd couldn’t be easier. Simply select your preferred product and apply online in under 5 minutes. We will then cross check your application for free, ensuring you fully meet the lenders criteria.
Once the application is cross checked, we will begin the application process for you straight away to ensure your application can progress quickly.
Do You Have Access To Lenders That I Can’t Approach Directly?
We work with all of the major banks and lenders you may well be familiar with. On top of this, we also offer products from many lenders who don’t tend to be well known by the public. We even offer direct applications to lenders who are do not deal directly with the public, if their products are the most suitable for you.
Applying For A Business Mortgage
When applying for business mortgages, you usually have to provide the following:
- Your latest 2 years trading accounts
- Asset & liability statement
- 6 months business & personal bank statements
- Proof of ID & address
It is worth ensuring these documents are ready and scanned onto your computer once you have applied as you may well be asked for them.
Are You Able To Raise Money For My Deposit If I Can’t Afford The Minimum Amount?
Yes – If you own other properties, or have a profitable trading business there is a good chance we will be able to assist you in raising your deposit.
A consideration in this is, of course, the additional monthly payment. Consider the additional borrowing and the effect this may have on your ability the main commercial property mortgage.
Your dedicated commercial mortgage expert will be able to discuss your needs and provide figures for your additional borrowing.
Will I Have To Switch My Banking Facilities To The New Lender?
Different lenders take different views in this area. Some lenders will insist that you switch all banking to them as a condition of the loan. In cases such of these, the loan will be dependent on the switch.
Sometimes we will be able to negotiate this position to ensure you only have to have certain payments going through the account or even remove the requirement altogether.
On other occasions, the lender will be comfortable to issue the loan without any switch of banking. There is no hard and fast rule. Switching banking can be complicated and time consuming for some businesses.
If the idea of switching banking is something you are keen to avoid, then you should make the lender or broker aware straight away. A commercial mortgage broker will usually still be able to offer you a mortgage without the need for banking to be switched.
It may be worth looking at the best loan with banking switched and the best without. That way you are able to make an informed decision about what is best for you as an overall package.
Do Commercial Mortgage Lenders Accept Adverse Credit?
Yes, there are lenders in the market who will accept an application from you even if you have suffered adverse credit in the past. As the level of adverse credit suffered increases, however, fewer lenders are likely to accept your application. This will generally reduce the maximum loan available to you and will see the interest rate rise.
Lenders will tend to consider missed payments on property-backed debt, such as a mortgage or secured loan as worse than other issues.
As with other types of finance, lenders will take into account your credit history as a factor that either increases or decreases the likelihood of default. This will then be used to calculate, with a higher risk almost always resulting in a higher interest rate.
100% Commercial Mortgages
It is common to see 100% commercial mortgages advertised online and we receive a lot of questions about how these work. To achieve 100% funding, you will need additional security to balance the risk to the lender. The additional security would come by way of a second (or more) property offered to bring the average LTV down to the kind of levels shown above. Some lenders do offer full 100% LTV mortgages to certain professions such as a doctor’s surgery.
If you are thinking about using additional security to fund a purchase without putting down a deposit, but all of your properties are mortgaged, the new lender would take 2nd charge behind the main lender.
This means the new loan will partly be a second mortgage on the additional properties offered. Although this is available, it is not common and will restrict the number of lenders available. This could result in increased pricing or less favourable terms.
Capital Raising Through Refinance
When looking to refinance a property that you already own, it is possible to raise additional funds. The most common reasons for doing so are:-
- Invest back into the business
- Further property investment
- Refurbish the property
- Pay an urgent bill
Commercial mortgage lenders will generally allow some element of capital raising on your application.
Different lenders have different approaches to capital raising, especially when it is for further property investment. Some lenders will release the capital, allowing you to find a property as you see fit, while others will want to know exactly what you’re buying.
If you’re looking to raise capital for investment into the business or property, it is important that you have definite plans in place.
I’ve Been Turned Down By My Own Bank. Will I Still Be Able To Get A Commercial Mortgage?
Commercial mortgage lenders have very different requirements when assessing a loan. Even if you’ve been turned down by your own bank, there is still a good chance that we will be able to help. Your own banks products may not be the most suitable lender for you in the first place, so often it proves to be a blessing in disguise.
There are lots of specialist lenders who can be a lot more flexible than high street banks. When looking for a new lender, assessing the whole market can actually result in a much better fit for your business.
Different lenders tend to favour different sectors and different circumstances. Because of this, an application that was turned down by one lender may be seen as an ideal case by another. Our experience means that when we submit an application, we present it properly giving you the best chance of success.
When looking for a new lender after a case has been declined, the commercial mortgage rates offered won’t always increase. Perception of risk and pricing is very different at different lenders and as such you may find you’re still able to enjoy competitive rates, regardless of previous adverse credit or declined applications.
Some (but not all) lenders arrange a meeting before taking your loan to formal offer. There are three main aims of the meeting
- To get to know you personally
- To understand your business
- To allow the person handling the application to understand exactly what you’re trying to achieve
Some clients can be nervous before the meeting, but it is an invaluable opportunity to allow the lender to see the positives in your business. It is the time to sell yourself and allow them to see the great difference you could make going forward. The meetings don’t tend to be too scary and in reality, some people who work in banks can actually be friendly!
If you are prepared and know your business, you will find the meeting far less daunting than first feared.
Securing Your New Commercial Mortgage
To secure your new business mortgage, compare the products above and apply online instantly. Alternatively, to discuss your requirements with an expert, enquire now for a call back, or call us on 01922 620008.