Lloyds Commercial – Lender Focus brought to you by Harvey Bowes Mortgage and Finance Brokers

Lloyds Commercial have an appetite for a wide range of commercial propositions. From lending on holiday homes and HMO’s to business lending and owner occupied commercial premises, there is certainly a plethora of interesting commercial mortgage products.

Something unusual in the current lending arena is that Lloyds Commercial will offer up to a 20 year fixed rate on commercial mortgage products. The advantage of this to an investor is stability throughout the term, although a disadvantage may be that the overall cost is therefore higher than a variable rate alternative of some kind, such as a discount, base rate or LIBOR tracker.

The lender will lend up to a borrowers 74th birthday at the end of the mortgage term and a maximum term of 25 years. Interest only mortgages are not currently available, however, the length of term and competitive rates mean that a property investment, such as a rental property or HMO may still cash flow well and there is the advantage of the fact that on a repayment basis, the balance owed to the bank is reducing over time.

Furthermore, with no 6 month CML guideline to restrict remortgages applying (Also known as the 6 month rule), it is possible to buy a property in cash or with a quick short term loan and not have to wait 6 months before re-financing with Lloyds Commercial.

The Lloyds commercial mortgage products also the flexibility of no Early Repayment Charge (ERC) and therefore if an investor wants the opportunity to flip or hold, this is again an ideal way to utilise competitive bank funding while having the option to choose to settle early without further pecuniary charge.

With an increasing number of first time landlords coming into the market place, another key element of Lloyds criteria is that they will consider first time HMO landlords. This is an area where many other lenders, including some of the flexible challenging banks do want experience as a landlord/investor before accepting HMO mortgage applications. Lloyds will consider first time landlords for HMO mortgages provided the proposition as a whole is robust. It certainly helps if the landlord can demonstrate that they have run or managed another type of business, or invested in their education of being landlord and running a multi-let or HMO property.

To find out more about Lloyds Commercial, or any other commercial lending, contact the team at Harvey Bowes today on 029 2175 4150.

Lender Focus – Cambridge and Counties

As a challenging bank active in the commercial mortgage market, Cambridge and Counties Bank is certainly making an impression. Perhaps a more unusual partnership, the bank has been established as a consortium between Trinity Hall College, Cambridge University and Cambridge County Council Pension Fund.

They will consider up to 70% loan to value with a minimum loan of £50,000 and maximum of £5m. There are short term and bridging loan options as well as long term products. On residential investments, such as Buy to Let and HMO properties they will consider lending on an interest only basis which will facilitate better cash flow on a monthly basis or of course repayment which will mean the balance of the loan will be reducing over the mortgage term.

Cambridge and Counties Bank, or CCB, say they are committed to working together to provide straightforward, no-nonsense products that will help small to medium sized businesses and property investors reach their full potential. With a proposition for owner occupied commercial property and commercial investment, as well as residential investment property mortgages, the bank have a well rounded approach to lending in this arena.

The bank also have a flexible approach to an investor/borrowers credit profile. Understanding that the odd wrinkle might not be a true reflection of how an investor will conduct themselves moving forwards. This is of course purely for underwriter discretion and the overall proposal must be robust. However, this flexible approach to underwriting is certainly popular among the property investor network throughout the UK. Especially with the adaptable approach to HMO mortgages and the large upsurge in investors looking for HMO loans to move with current rental demand.

The bank also lend to SIPP and SSAS schemes. This area of the market is set to grow substantially in the coming years and therefore having a bank to lend and a broker who understand this type of proposition can maximise the potential of any pension based leveraging. The liaison required to move such a project forward will also potentially involve pension administrators, your IFA and pension members. Therefore having a broker and bank that understand how to position such a proposal and management the progress is critical to success.

To find out more about Cambridge and Counties Bank, or to find out more about Harvey Bowes Limited and our commercial mortgages and finance, please contact Ben Hollingsworth on 029 2175 4150.