Sole trader purchases office with 25% deposit

We were approached by a management consultant who wished to purchase small commercial office in North London from which to run his business. He had been renting serviced office space but believed he could reduce his outgoings by buying instead.

He had approached his bank (a high street name) but despite an exemplary record and good sole-trading figures, the bank declined a loan because he needed 75% LTV.

We approached one of the challenger banks which is known for offering higher LTVs on commercial mortgages for owner-occupiers. The lender was happy to help and offered the following deal:

Property value: £175,000

Loan amount: £131,250

LTV: 75%

Rate: 5.99% 3 year fixed

Term: 20 years capital and interest

Lender arrangement fee: £2,231

Mortgage payment: £940 pcm

Completion date: August 2015

Consultant: Steve Bedford

Consultant tel: 07850 446 230

9th September 2015