Despite the rapid increase in property prices in the UK during the last quarter, banks have tended to shy away from property lending as a result of increasing regulation. This funding gap has been filled by pension funds, hedge funds and alternative lenders betting on the housing market to provide capital to those wanting to get property.
London’s commercial property market has also seen huge amounts of investment, according to recent reports in the construction and supply chain finance industry. In Q1 2014, £4.3bn was invested into commercial property in London.
Our tips for securing a new commercial mortgage/ re-mortgaging
- See how much cash you can put in to the deposit.
- Assess your assets – do you or your business partners have other property they can refinance to contribute towards the deposit or back as a security?
- Loan to value – these are 60% for investments, 80% for owner-occupied properties, 90% for dentists, and 100% for GP surgeries and veterinary practices.
- Make sure the finances of your company are up to date – accounts, VAT returns, etc.
Here at Business Funding, our advisors work round the clock to help SMEs secure commercial mortgages, develop commercial property and even save current commercial property owners by transferring them to lower rate mortgages with other banks. So even if your bank has said no, get in touch with us to find out how we can help you.