The new loan gives buyers of commercial properties such as shops, offices industrial units, care homes and pubs options including lump sump repayments, payment holidays and further advances within 48 hours.
Gary Hockey-Morley, director of Abbey National business, said: "This new mortgage is of huge benefit to many businesses. For example, one
company recently wanted to borrow £250,000 now and a further £30,000 later to fund the next stage of their expansion. We agreed the full £280,000 loan but the customer only paid interest on the first £250,000, saving them hundreds of pounds in interest but still giving them access to the other £30,000 when needed.
"In another case, a business owner received a lump sum of money. Normally, it wouldn't be a good idea to pay off a commercial mortgage if you may need the money in the future as you will pay administration fees for a further advance. With our Flexible Business Mortgage, they were able to pay off some of the outstanding balance but still draw it down without charge at a later date. Flexible mortgages have been very popular with personal customers, so we thought it only fair that businesses are given the same opportunity.
The mortgage is available for the purchase or remortgage of commercial premises (including going concerns) and for equity release to help fund business expansion.
* Lump sum payments or increased installments can be made at no extra cost
* In any one year, there is the option to have the following:
* two payment holidays of one month each
* two reduced monthly instalments of one month each
* two further advances
* All of the above can be provided within 48 hours
* Interest is calculated on a daily basis
In addition, businesses can re-borrow up to a maximum of 75 per cent of the value of a property purchased or refinanced, or 70 per cent for a business purchased or refinanced.