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Credit backed terms at 80% LTV received within 2 weeks

Credit backed terms at 80% LTV received within 2 weeks

We were approached by a broker looking for help in sourcing a commercial owner-occupier mortgage for his clients - two directors and equal shareholders of a trading limited company.

The company specialises in sourcing locations for shooting a range of productions for both film and television. 

Wanting to move out of their currently rented premises, the directors had set their sights on large commercial unit just 15 minutes away and were looking to purchase it with a deposit of 20%.

Before approaching Mortgages for Business, the broker had approached the company’s bank, but had been declined due to the high loan to value requested.

The broker needed to receive credit backed terms quickly, as the vendors didn’t want to take the property off the market, so he approached Mortgages for Business to help him find the right lender to get the case across the line swiftly.

We took the case to one of the high-street banks with whom we have a strong relationship with. For an initial offer the client was asked to provide the following:

  •          Photo ID for both directors
  •          Completed application form
  •          Trading Ltd Co’s last 3 years’ full accounts 
  •          Company strategy in respect of the office move & expansion

The bank offered the directors 80% LTV and a six month term VAT loan to help with cash flow.

The directors had asked if a loan to cover the VAT of the purchase would be possible, as they would be able to claim back the VAT shortly as they would soon be operating a VAT-registered business.

The client received credit backed terms within 14 days and a valuation was carried out the following week.

 

Property Details

Here are the details of the deal:

Property value: £710,000

Loan amount: £568,000

VAT loan amount: £142,000 (not included in LTV)

LTV: 80%

Rate: 2.75% above Bank Rate (3%)

Term:

            Main loan: 20 years capital and interest

            VAT loan: 6 months capital and interest

Lender arrangement fee: 2% (£14,200)

Mortgage payment: £3,150 pcm (VAT loan paid back via bullet repayment from VAT refund)

Broker proc fee: 0.5% (£3,550)

Consultant: Paul Keddy, 01732 471655

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.

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