Fixed an variable rates with short and long-term periods, up to 25 years. Available to trading businesses looking for a commercial loan.
The term “Commercial Mortgage” – though some lenders might instead use the term “Business Loan” in its place - is used for any loan secured on property other than your residence. Commercial Mortgages include buy to let mortgages, which are built for a high volume market.
However, different premises can significantly vary in the risk that they would pose to a Commercial Mortgage lender. For this reason, each Commercial Mortgage is assessed individually and priced to take account of the specific risk.
How do commercial mortgages work in practice?
Though business loans of £25,000 or below are unsecured, lenders need more security if you want them to provide a Commercial Mortgage exceeding this value. This is because lenders are eager to mitigate the risk to themselves. Usually, the only security you need to provide is the property itself.
We are a whole of market broker and, therefore, can consider various options to assist you in obtaining a Commercial Mortgage suitable for your needs. Commercial Mortgages usually last from 3 to 25 years. Sourcing Commercial Mortgages through our broker allows you to benefit from:
- Fixed and variable rates linked to Base rate or Libor
- Amortization periods potentially lasting 30 years
- Periods of capital and interest repayment or interest only
- Widely varying loan-to-value ratios. These can reach 100%, though they are typically 70%
- Bank arrangement fees on top of the loan.
In seeking the right Commercial Mortgage for you, we will deal with a variety of lenders – including high street banks and secondary and third tier lenders. With these lenders, we will argue your case as a way of helping to secure the best possible deal for you.
Property Investment Finance
Funding available to assist with either the purchase or refinance of a residential or commercial property which is let out to tenants.
With help from Hilton Smythe Finance Limited, you can secure funding that can assist you with either purchasing or refinancing a property to let.
We can help you to source the most suitable funding solution. Here are a few examples of the types of properties which can be funded:
- Retail and commercial units, including warehousing, for various sectors
- Semi-commercial properties. These are properties which each have a commercial element and a residential element. Examples of semi-commercial properties include pubs and bed and breakfasts
- HMOs, otherwise known as houses in multiple occupation. Each HMO has at least three tenants living there and forming more than one household
Keep in mind that this list is not exhaustive. If you seek funding for another type of property not in this list, please get in touch with us to learn about the options.
We have an in-house finance team for helping our commercial property investment clients to find tailor-made and stress-free solutions that suit their particular needs.
Whether it's a small unsecured loan or a larger, more complex secured loan companies can benefit from a range of business loans for a variety of purposes.
Cash flow can ebb and flow, capital investments can tie money up for weeks, months and years and unforeseen expenses can arrive at any time.
Alternatively great opportunities might get away because you don’t have the funds available to take advantage of the deal, hire the right person at the right time or invest in the latest equipment or software before your competitors can and steal a decisive march in the market.
Business loans are the standard solution for any company from a sole trader to a multi-national corporation. The right amount of money at the right time on the right terms can make or break a business many times over.
Whether it’s a small unsecured loan or a larger, more complex secured loan; whether it’s for a new startup or a long established company with a great credit record – it’s a common and near essential requirement across the business landscape.
Our expert financial staff has secured millions in business loans for our clients over the years for purposes ranging from working capital needs to essential or speculative business expansion up to leasehold and goodwill purchases.
Speak to us and discuss your business loan needs and we will work out the most affordable, hassle-free solution for you to meet your business needs and not leave you with financial headaches down the line.
We can discuss the common features of all available business loans including flexible terms with no early repayment penalties, fixed or variable rates of interest and repayment terms with short and longer term available depending on the various aspects of the package.
Traditionally financial routes can supply business loans but we have the experience, knowledge, contacts and capability to meet your requirements and begin building a business and financial relationship that can be beneficial to us both for years to come.
Property Development Finance
Development funding for refurbishing and developing houses, apartments, retail or commercial units.
Modern finance restrictions and lender reticence have caused a tightening of the finance market and made it harder for entrepreneurs and developers to access the funds required to get plans drawn up and spades in the ground.
Whether you are looking into building and developing houses, flats, apartments, retail units, commercial or industrial sites then we can help you access that finance.
Whether you are an experienced developer with years of experience or are looking to complete your first scheme, we have access to a huge range of specialist lenders who understand and concentrate on the building development sector.
Our experience of working with these lenders has allowed us to build up trusted working relationships with them and allow us to help source the funding to suit your specific requirements. Unlike traditional mortgage providers and traditional banking based solutions, lenders we work with base their lending criteria on both Loan to Cost (LTC) and Loan to Gross Development Value (GDV) which gives them more options to work with a customer.
Usually the funding is up to a maximum of 75% Loan to Gross Development Value (GDV) or 90% Loan to Cost (LTC) which can be increased to 100% with additional security. Repayments can be on a varied schedule but can be extended up to a 24 month term.
There is a stage drawdown against Quantity Surveyor or Architect certificate to ensure fairness and compliance.
Interest is rolled up into the loan so there is only one regular payment and there is flexibility with the repayment dates to you can schedule them so they are most convenient for you and your business to meet.
The property market may fluctuate in the next six to 12 months but our expertise and contacts will help you access the property development funds you need to build your platform for success.
Short-term Finance & Bridging Loans
These loans can meet short-term property financing needs, such as purchase at auction, property development and refurbishment.
Commercial Mortgages can greatly vary in their terms, which are usually from 3 to 25 years. However, your financial needs might be more short-term than this.
There are various scenarios where you might want short-term assistance in financing a property. You might want to buy a property especially quickly, such as at auction. In this situation, a mortgage quickly becomes necessary.
Alternatively, you might seek funding for developing property or buying and refurbishing investment property before you let it out. You might also want an urgent injection of cash flow.
For any of these issues, a bridging loan - a form of short-term finance - can prove very useful. At Hilton Smythe, we can leverage our position as an independent, whole of market broker to source you a bridging loan from a wide range of lenders.
Common features and options with bridging loans
It's possible to take out a bridging loan appreciably more quickly than a mainstream loan. It can be possible to obtain a bridging loan within 48 hours of applying for one.
Furthermore, you can choose from many different properties when deciding against which property to secure a bridging loan. Even clients with an impaired credit history can be generally accepted for bridging loans, for which term times from 3 to 24 months are available.
Loan-to-value ratios, including interest roll-up, are usually between 65% and 75%, but can reach 100% with additional security. First and second charges are also available, while fees can be added to the loan.
Some of our partner lenders are willing to lend against the property's value rather than its purchase price.
To find out more, call now on 01204 556 300.
Having worked in the food industry for the last 9 years, our foodie client approached Hilton Smythe Finance after seeing a long-established bakery for sale near to his home. The purchase price of the bakery was £450,000, the client had £60,000 cash available, Hilton Smythe Finance were able to arrange borrowing of £390,000 over 25 years.