Commercial Mortgage

Raising finance against property is the most common proposal which we see. Whether it be refinancing existing property, buying new for owner occupation or buying new for investment, we have seen them all.

Although a very popular type of finance, as with all things, no proposal is the same and each needs careful consideration. The issues surrounding both the property and the ongoing business strategy must be taken into account.

When looking at property proposals, there are generally two places to seek finance – the High Street (all the well-known banks) or “off the High Street” (a multitude of “secondary lenders”). Each has it’s own place and each has advantages/disadvantages.

In very general terms, High Street banks are conservative in their approach – lower LTV ratios and greater need for information - but, for this reduced risk they offer attractive rates of interest. Secondary lenders tend to increase the risk – higher LTVs and less information (often self-certification) – but charge a higher rate of interest (and higher fees). Neither can be said to be better or worse – they are different.

Within this broad banner, we also place property development funding as it involves lending against property assets. It also fits well in that we can obtain finance both on and off the High Street.

Whether you are seeking finance for a single residential property or a full mixed resi/commercial development, we have the ability to help. Unlike traditional property finance discussed above, these projects require a full understanding of the mechanics of a development, the cash flow implications of issues such as phasing, the additional requirements such as road bonds and performance bonds, and an understanding of how all these affect the financial requirements

At Finencia.com we have the ability to package the deal on your behalf to ensure it is a bankable proposal and then we select the most appropriate lender. Such transactions will cost more in terms of fees and rates – but the rewards can be outstanding!

This summary has hopefully provided an overview of our ability to help you with your property needs – for further information or to discuss a transaction, please give us a call.