January 2018 - First 4 Commercial

Benefits of a Personal Loan

With the various types of loans available on the financial market, it can be a bit confusing to understand exactly what you can do with the loans available. By the end of this short guide, you’ll have a better grasp on the concept of a personal loan, and what you can use it for.

A personal loan is a short-term loan available through many financial services, this includes banks, building societies, brokers, financial services, and lenders. By definition, a personal loan is a loan that you can use for a number of individual reasons, not only limited to personal expenses that you may not be able to finance at this point in time.

Personal loans have been used as small bridging loans, for short-term borrowing, for unforeseen financial matters (like breakdowns), and even for residential development. The most common uses for a personal loan are debt consolidation and home repair, though it isn’t particularly advisable to use one loan to pay off another one.

Unlike commercial or business loans, you don’t need to provide any collateral or security deposits to receive a personal loan. It’s an unsecured loan where you can choose the amount you borrow, and then pay back over a set number of months with the financial company’s interest rate attached. For first4commercial, the APR on personal loans are competitive; with larger amounts (above £15,000) having a rate of 8-10%, middle amounts (of £5-15k) having a rate of 6-9%. Smaller loans can actually have a higher interest rate.


Understanding first4commercial Personal Loans

Before you lend from a financial organisation, you should make sure that they’re properly certified. First4commercial are a team of fully qualified advisers, who all have Certificate in Commercial Mortgages CeCM, and Certificate in Mortgage Advice and Planning CeMAP qualifications.

Personal loans, which are also known as unsecured loans, are loans where you can borrow a fixed amount from a financial lender, and agree to pay it back of a set time period by repaying the loan in monthly instalments (including interest).

The advantage to a personal loan is that you get the cash you need upfront, and then choose the time frame to pay it back in.

First4commercial have connections with a leading peer-to-peer lender in the UK, and are able to provide personal loans to clients with an acceptable credit record; no defaults, and with a Equifax or 400+ or an Experian of 720+.

Individuals may borrow up to £25,000, but there is a minimum borrowing amount of £1,000. The person requesting the loan must earn at least £12,000 per annum, and be at least 24 years of age at the time they request the loan. First4commercial will not lend a personal loan to individuals over the age of 72.

There are no geographic restrictions for UK borrowers, including those who reside in Northern Ireland who are looking for a personal loan. Loans are available for individuals who rent as tenants of a landlord, as well as homeowners.

Personal loans are also suitable as a short-term bridging loan.


Commercial Mortgages

First4commerical offer secure commercial mortgages for a range of professionals and commercial businesses.

A commercial mortgage refers to any loan secured on a non-residential property. Each loan is individually assessed, and priced according to the risk that the lender could face when lending to that individual.

Generally, lenders use the property you’re are buying as security for the loan, and an additional cash deposit for the balance of the purchase price. However, if you don’t have the finances available for the cash deposit, the lender will accept other properties you have equity in as additional security.

Commercial mortgages typically last from 3 to 25 years, though short-term finance is available using a bridging loan or property development loan, which can span from a few weeks to 24 months.

These loans can be secured on various commercial properties, such as shops, business properties, warehouses, garages, and care homes. The commercial loan lender will hold the deeds to the property in question as security.

Non-status lending is a term used by finance services to indicate that an applicant does not, necessarily, need to provide their income or credit score when requesting a loan. They may still be accepted, even without proof of finances. First4commercial offer this type of lending with their commercial mortgages.

You can also request 100% finance by raising the required deposit on any existing properties that you own.

First4commercial offer commercial mortgages on a plethora of various properties, when in doubt, it might be best to get in touch.


Bridging Finance and how it can benefit you

First4commercial are Essex based Commercial Mortgage Broker, covering a range of commercial finance, but specialising in Commercial and Bridging Finance.

Bridging loans are a short-term funding option, they are used as a quick fix for a financial situation, usually pertaining to property transactions; though they can also be used in unforeseen financial circumstances.

Bridging loans are designed to assist in the purchase of a property, specifically before a person sells their existing home. The loan offers an individual short-term access to an amount of money at a high interest rate.

As standard financial providers, like banks, and building societies, have grown more disinclined to lend individuals finances, bridging lenders are becoming more common in the financial industry.

Usually, bridging loans are aimed at landlords and property developers that are new to the home development sector. When a mortgage is needed quickly, or there is a time gap between finances that would leave you short, a bridging loan may be ideal.

Bridging loans can be used for various reasons, including property investment, development, and buy-to-let. Recently, it’s become more common for individuals to use bridging loans because other financial providers are taking longer to process applications for property-related loans.

If you have a residential or commercial property that is not already fully mortgaged, first4commercial will likely be able to secure a bridging loan for you quite quickly, using the property as security. Rates start from as little as 0.45% per month, and you could borrow up to £25,000 for unregulated enquiries.

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