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Business Mortgages - Buy to Let Mortgages & Commercial Mortgages
28th May 2003
Trends in Buy to Let
Many residential investors will have seen press about the fall in rental return on properties in London & the South East. As a result, many landlords have switched their attention to cities outside the South East, such as Glasgow, Nottingham, Manchester and Leeds.
Both Nationwide Building Society and ARLA (Association of Residential Letting Agents) have reported an increase in house prices in these areas in the last quarter.
One of our lenders is trying alternative mechanisms to secure funding. They are trying an alternate calculation based on a multiple (205 times) the monthly rent figure. This might be a solution for you if you are looking at rents which don't allow an 85% LTV mortgage.
Trends in Commercial Mortgages
The offset mortgage is now appearing. Some of our lenders are now offering this as a competitive alternative. We know of at least 3 lenders that are offering this service.
The principle is the same as a residential mortgage - the amount in the business bank account (current account) is offset against the repayments of the business mortgage. Most lenders require a minimum in your business account (between £1,000 - £5,000)
New Commercial Providers
Over the last 3 months we have been working to make our mortgage panel as wide as possible.
Bank of Scotland - competitive High Street Lender who with their new Smartfinance product are bringing the world of "offset" mortgages to the commercial sector.
RBS West - for those looking at commercial property in the West Country, this high street lender is able to provide specialist and competitive assistance.
ASC - one of the largest nationwide brokers in the UK specialising in those purchasing a business and able to assist those who are new to the commercial field via their nationwide network of commercial finance branches.
Click for a quote from our new and existing commercial mortgage providers
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