Aimed at landlords interested in the commercial sector, the Commercial Investment Mortgage Plus – dubbed CIM+ – product is available at 1.65 per cent above three month LIBOR, with an uncapped procuration fee of 1 per cent.
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The CIM+ product is available up to 85 per cent loan-to-value (LTV), with the rental requirements set at 100 per cent of the mortgage repayments. The applicant must also provide evidence of other investment properties within the residential or commercial sectors.
Commenting on the launch, Stephen Johnson, sales and marketing director at Commercial First, said: “8 per cent of all commercial property purchases in 2005 were made by private individuals, and we believe this market alone to be worth around £4 billion annually. Landlord appetite in the buy-to-let sector remains strong, and investors are becoming increasingly aware of the benefits commercial property can add to their portfolio.”
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Commenting on the product, Mike Pendergast, IFA at Zen Financial Services, said: “The 85 per cent is very good, normally the LTV is lower with commercial deals at around 70-75 per cent. The product rate is fairly standard, but overall this is a good deal for those looking to get into the commercial investment sector.”
