March 2014 - First 4 Commercial
28Mar2014

Buy to Let loans with no monthly payments

This product is for clients who wish to raise capital on a Buy to Let property or portfolio of properties as either a 1st or 2nd charge.

first4commercial have teamed up with a leading specialist lender to be able to provide our clients with additional lending options. This new niche product will allow our clients to raise additional capital without any need for monthly payments to be made. Instead the lender takes a profit share of any increase in property value at the end of the term.

Maximum amount allowed: A 1st or 2nd charge loan is secured on the clients Buy to Let property up to a maximum of 20% of the property value and must be no more than 85% when this is combined with any first charge mortgage in place.

e.g. A property valued at £200,000 with a £100,000 first mortgage will be able to raise a new 2nd charge loan of £40,000 = 20% of the property value.

Amount paid back: The lender will take a profit share equivalent to twice the original percentage borrowed.

e.g. If your original loan is 20% then they will require a 40% share in any profit increase (This is ONLY an increase in the property value from date of loan, if the property does not increase then you only repay what you borrowed).

Property value: The value of the property must be below £2m and above £50k.

Loan amounts: £10k – £400k

Age: 21-79

Term: 1-10 years

Early Redemption Charges: In the first year there is a 5% fee if you repay the loan. After that if the loan is redeemed other than by sale of the property the lender will charge a 2% annual fee (based on loan amount) or take their profit share as agreed whichever is the higher amount.

Use of funds: The loan can be used for any legal purpose, no restrictions.

For full details and a FREE tailored illustration please contact the team on 01277 620083 or email info@first4commercial.com

first4commercial.com

f4c

T: 01277 620083 F: 01277 658900 E: info@first4commercial.com

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

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