We provide a wide range of additional financial services including, Commercial Loans, Self Build Loans, Bridging Loans, Borrowing Capacity Letters and more. So, if you are looking to take out on or more of these loans, we can offer the help and guidance you need.
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A commercial mortgage can be used for buying property such as an office premises or unit for your business or to be rented out. This includes purchasing a property with a ground floor premises for commercial use and then residential flats upstairs. It can also be used for refurbishing your existing owner-occupied business premises.
A self-build mortgage is a loan you take out to fund a property you are building yourself, usually with the intention to reside in on completion.
The main difference from a standard residential mortgage is that you receive the funds in stages as parts of the build are finished, rather than as a single lump sum. This is to reduce the lender’s risk and ensure that the money is spent as planned. This way, you won’t run out of cash when you’re only halfway through the project.
Exactly when funds are released depends on the lender. However, you’ll typically receive the first payment when you buy the land. You’ll then receive more when the foundations are laid, and a further payment when the property is built up to eaves level.
A self build is extremely time-consuming and can feel overwhelming, if this is something you’d like to look into further, please get in touch.
A bridging loan is a short-term loan used to help you ‘bridge the gap’ when you want to buy something, but you’re waiting for funds to become available from the sale of something else. This can happen where the sale of a current home is a few weeks behind your onward purchase and you become in danger of losing your dream home. Bridging loans are far more expensive than residential mortgages due to them being designed for short term use. Sometimes Bridging loans are taken to complete unfinished home renovations or self build projects that have gone over budget. Until the renovations are complete, it can stop the applicants securing a traditional mortgage.
A closed bridging loan has a fixed repayment date. The date will usually be based on when you know you’ll have your funds available (for example when the sale of your house has gone through). This type of loan is usually cheaper than an open bridging loan because there is less flexibility available around repayment.
This type of loan has no fixed repayment date and so can be repaid whenever your funds become available. However, lenders will normally expect you to clear the debt within one year, although some lenders offer longer repayment terms.
A Mortgage Capacity Report is a document used to explain a person’s ability to borrow funds as a mortgage towards a house purchase or remortgage. These reports are often used as part of divorce proceedings in court or during financial settlement disputes. The report includes details about a person’s financial position and what size mortgage may be available to them.
Get in touch with our team today for help and advice on tailored business loans.