Calling on commercial

Commercial investment continues to grow with demand for commercial property still on the increase. A growing number of finance brokers are involved in the commercial market, widening their business opportunities and profitability.

Lancashire Mortgage Corporation, the specialist commercial lending division of Blemain Group and a patron of the National Association of Commercial Finance Brokers, has doubled lending over the last six months and is continuing to evolve and provide innovative and flexible products to give brokers similar options to those they are used to in the residential mortgage market.

Enhancements

The company launched several new products and significant enhancements to existing plans at the recent Mortgage Business Expo in London. These included:

A new interest free payment holiday option, interest free for the first three months with no repayments due, is available on all unregulated term loans.

New fixed rates are available on all CCA-regulated and unregulated commercial mortgages and loans. A great option for those clients wanting to safeguard against rate changes.

Term plans range from light to high adverse with new risk-based interest rates from 7 per cent. Extra options to those detailed above include discounted rates, where a 2 per cent discount for one year is available on all commercial and semi-commercial mortgages and loans. An interest only option for the full term is also available on unregulated mortgages and loans. Intermediaries

can now offer an interest only commercial loan for up to 30 years with an initial three months’ interest free payment holiday with a discounted rate for one year. These facilities, where no accounts are required, are ideal for small, medium or newly set up businesses, helping establish the business and improve cash flow with an initial lower payment and then a low payment throughout.

Short-term funding

As market leaders in short-term funding, Lancashire Mortgage Corporation offers clear first or second charge bridging finance with one 1.25 per cent rate on all loan-to-values, property types and status. There is no interest rate loading for deferred payments, payment deduction, roll-ups or stage payments. Cases outside criteria are viewed on their individual merits. Fast short-term finance can be provided in 24 to 48 hours and there are no hidden charges, no monthly management fees and rates don’t increase after a pre-determined period.

Development finance is also offered with up to 100 per cent of the purchase price and up to 100 per cent of the development cost. Again there is no interest rate loading for deferred payments, payment deduction, roll-ups or stage payments.

At Lancashire Mortgage Corporation, we are able to lend to all status of client, including limited companies, sole-traders, pension schemes, partnerships, clients who have had financial problems, clients who need to self-declare their income, and many other circumstances.

Any property or land, with or without planning permission, in England, Scotland or Wales is acceptable regardless of structure, condition or usage. Properties can range from buy-to-let portfolios to retail complexes and include guest houses, night clubs and petrol stations. Extra or multiple securities are also accepted.

Commercial lenders need to continue to be innovative to support mortgage intermediaries in this expanding market. They need to create a range of lending options for all situations and that satisfy a need in the commercial mortgage market. This needs to be backed up by a high level of service, training and support for mortgage intermediaries to help them maximise the

opportunities in the sector.