Commercial Finance products:
Key lending criteria:
- Borrower type; UK registered Limited Companies, LLPs, Partnerships and Sole Traders
- Loan size; £150,000 to £10 million
- Term; 5 to 25 years. Interest only products maximum 5 years
- Base Rate type; Variable – Bank of England Base Rate (subject to a minimum Base Rate of 1.5%). Fixed – reverts to a margin above Bank of England Base Rate equal to the fixed rate less 1.5%, subject to a Base Rate floor of 1.5%
- Security; First charge over Freehold & Long Leasehold Property in England, Scotland & Wales. Debentures and guarantees on a case by case basis
Commercial Investment
Commercial investment up to £2m
LTV up to 60%
5-year fixed 8.25%
Variable (margin over Base Rate) 4.80%
Commercial investment over £2m
LTV up to 65%
5-year fixed 8.00%
Variable (margin over Base Rate) 4.50%
Semi-commercial, 50-80% residential
LTV Up to 60% | 5-year fixed 6.20% | Variable (margin over Base Rate) 2.25%
LTV Up to 70% | 5-year fixed 3.90% | Variable (margin over Base Rate) 3.00%
LTV over 70% | 5-year fixed 7.10% | Variable (margin over Base Rate) 3.50%
Semi-commercial apportionment is defined by percentage of floor space across a semi-commercial property or portfolio (confirmed at valuation). The residential element must not exceed 80%, and must be capable of being let on a separate assured shorthold tenancy. The commercial element must be not less than 20%. Properties less than 50% residential will be classed as commercial from a product perspective.
Commercial investment up to £2m
LTV Up to 70% | 5-year fixed 8.25% | Variable (margin over Base Rate) 4.80%
LTV over 70% | 5-year fixed 8.40% | Variable (margin over Base Rate) 4.95%
Commercial investment mortgages, backed by the Recovery Loan Scheme guarantee, are available on a 5-year interest-only term.
Owner-occupied
Commercial
LTV Up to 60% | 5-year fixed 7.15% | Variable (margin over Base Rate) 3.10%
LTV Up to 70% | 5-year fixed 7.50% | Variable (margin over Base Rate) 3.45%
LTV over 70% | 5-year fixed 7.85% | Variable (margin over Base Rate) 3.80%
Semi-commercial
LTV Up to 60% | 5-year fixed 6.10% | Variable (margin over Base Rate) 2.00%
LTV Up to 70% | 5-year fixed6.45% | Variable (margin over Base Rate) 2.35%
LTV over 70% | 5-year fixed 6.80% | Variable (margin over Base Rate) 2.70%
Interest-only, Owner-occupied
Pricing
LTV Up to 70% | 5-year fixed 7.30%
LTV over 70% | 5-year fixed 7.40%
Product Terms
Borrower type: UK registered Limited Companies, LLPs, Partnerships and Sole Traders. Owner occupiers only
Loan size: £150,000 to £2,000,000
Term: 5 years
Rate type: Fixed
Security: First charge over Freehold & Long Leasehold Property in England, Scotland & Wale, Debentures – case by case, Guarantees – case by case
Owner-occupied hotels
Up to £1.5m
Debt service cover | LTV – VP | LTV – MV
130%-200% debt service cover | 70% | 65%
200% debt service cover | 80% | 65%
Over £1.5m
Debt service cover | LTV – VP | LTV – MV
130%-200% debt service cover | 70% | 65%
200% debt service cover | 80% | 65%
Pricing
Loan to VP value | Up to 60% | Up to 70% | Up to 80% | Up to 90% | Up to 100%
Fixed rate | 7.15% | 7.50% | 7.85% | 8.10% | 8.35%
Variable margin | 3.10% | 3.45% | 3.80% | 4.05% | 4.30%
Product criteria
- A dedicated relationship manager will be assigned to all customers where the loan exceeds £1.5m and the LTV exceeds 70% of VP value
- Management accounts to be provided on a quarterly basis for loans over £1.5m
- Loan over 80% of VP value and must be fully amortising from day 1
- Personal guarantee to be given for any amount in excess of 70% of VP value
Healthcare – care homes
Experienced operators (a minimum of two years as care home owner-operator)
- Loan size for experienced operators: £500,000 to £10m (subject to a maximum of 5.0x EBITDA)
- Loan-to-value for experienced operators: up to 70% MV and 100% MV2, whichever is lower
- Margins are above Bank of England Base Rate (subject to a minimum Base Rate of 1.5%)
- Interest Rate Margins are subject to status and due diligence
- Extending above 90% MV2: considered subject to borrower profile, valuation and DSCR
- For care home transactions, please speak with your BDM/ SRM for full details on required information
Products
Up to 70% MV/ 90% MV2 | Rate 3.00% | 25 years (20 years for non-purpose built)
Up to 70% MV/ 100% MV2 | Rate 3.50% | 15 years
First-time buyers/ new entrants (operator with less than two years experience/first-time buyer)
- Loan size for first-time buyers/ new entrants: £500,000 to £5m (subject to a maximum of 5.0x EBITDA)
- Loan-to-value for first-time buyers/ new entrants: up to 70% MV and 100% MV3, whichever is lower
- Margins are above Bank of England Base Rate (subject to a minimum Base Rate of 1.5%)
- Interest Rate Margins are subject to status and due diligence
- Extending above 90% MV3: considered subject to borrower profile, valuation and DSCR
- For care home transactions, please speak with your BDM/ SRM for full details on required information
Products
Up to 70% MV/90% MV3 | Rate 3.75% | 25 years (20 years for non-purpose built)
Up to 70% MV/100% MV3 | Rate 4.00% | 25 years (20 years for non-purpose built)
Specialist care operators (a minimum of five years as care home owner-operator, strong links to regulatory bodies and mature operational team)
- Loan size for specialist operators: £500,000 to £10m (subject to a maximum of 5.0x EBITDA)
- Loan-to-value for specialist operators: Lower of 70% MV1 or 120% MV3
- Margins are above Bank of England Base Rate (subject to a minimum Base Rate of 1.5%)
- Interest Rate Margins are subject to status and due diligence
- Extending above 100% MV3 subject to borrower profile, valuation and DSCR
- For care home transactions, please speak with your BDM/SRM for full details on required information
Products
Up to 70% MV/80% MV3 | Rate 3.00% | 18 years
Up to 70% MV/100% MV3 | Rate 3.25% | 15 years
Up to 70% MV/120% MV3 | Rate 3.50% | 15 years
Experienced operators (a minimum of two years as children’s day nursery owner-operator)
- Loan size for experienced operators: £500,000 to £10m (subject to a maximum of 5.0x EBITDA)
- Loan-to-value for experienced operators: up to 70% MV and 100% MV2, whichever is lower
- Margins are above Bank of England Base Rate (subject to a minimum Base Rate of 1.5%)
- Interest Rate Margins are subject to status and due diligence
- Extending above 90% MV2: considered subject to borrower profile, valuation and DSCR
- For care home transactions, please speak with your BDM/SRM for full details on required information
Products
Up to 70% MV/90% MV2 | Rate 3.00% | 20 years
Up to 70% MV/100% MV2 | Rate 3.50% | 15 years
First-time buyers/ new entrants (operator with less than two years experience/first-time buyer)
- Loan size for first-time buyers/ new entrants: £500,000 to £5m (subject to a maximum of 5.0x EBITDA)
- Loan-to-value for first-time buyers/ new entrants: up to 70% MV and 100% MV3, whichever is lower
- Margins are above Bank of England Base Rate (subject to a minimum Base Rate of 1.5%)
- Interest Rate Margins are subject to status and due diligence
- Extending above 90% MV3: considered subject to borrower profile, valuation and DSCR
- For care home transactions, please speak with your BDM/ SRM for full details on required information
Products
Up to 70% MV/90% MV3 | Rate 3.75% | 20 years
Up to 70% MV/100% MV3 | Rate 4.00% | 20 years
Product information correct as of 17/01/2024.
For intermediaries only.
Your home may be repossessed if you do not keep up repayments on your mortgage or a loan secured against it.
The Financial Conduct Authority does not regulate some aspects of corporate financial planning, property investment or buy to let lending.
