Finance Blog | Commercial Lending, Essex, London | first 4 Commercial
8Sep2018

Securing a Large Commercial Mortgage with First4Commercial

At First4Commercial we have assisted a wide range of businesses, in a variety of sectors, to secure large commercial loans. There are several types of commercial property that can be used as security on a large commercial mortgage. We have helped offer expert advice and guidance within the following industries and business types:

  • Large agricultural projects
  • Large-scale construction and development projects
  • Expansion within the leisure industry
  • Multi-occupation office space for commercial needs
  • Retail space, from single occupier to large multi-tenant buildings
  • The legal and professional sector

Whereas a business might wish to take out a small commercial loan at certain times during the initial stages of a business, a larger loan will help a business as it looks to take the next step in its growth. This could be to assist with a relocation of a business to new premises, or to help with an increase in staff numbers or improvement in required technology.

How Does a Large Commercial Loan Operate?

Once a small business loan has come to an end it is often necessary to take out a large commercial loan. If you are seeking anything over £25,000 this requires a commercial property to be used as security. We can help you take out a commercial loan up to 100% of the value of the property in question with flexibility in the form of additional security if it is an option, and required.

For more information on taking out a large commercial loan, speak to the experts here at First4Commercial. We can help you maximise your potential. Call us on 01277 620083 or email info@first4commercial.com to find out more.

2Sep2018

How a Personal Loan is a Great Alternative to Using a Credit Card

To take advantage of many opportunities in modern life you have to have a good credit score. It can make a huge difference to a person’s ability to move forward with their life. For many, the easiest option is to take out a credit card to build their score over time. A better credit score will help you in future if you decide to apply for a mortgage, to refinance your current home or to secure a large bridging loan.

A credit card might seem the easiest choice, but there might be a better alternative. By taking out a personal loan with First4Commercial you have a greater way to build up your credit score without the long-term risk associated with a credit card. Here are  2 reasons why:

Make a One off Payment with Ease – A personal loan is a fantastic way to make that single payment for a large item that you need. Whether it is for an emergency situation, a home refurbishment, to purchase transportation or other opportunities, a personal loan can help you make that payment fast, build up your credit score and allow you to secure flexible repayment terms that suit you.

Payment Terms that Work for You – On a credit card your monthly repayments can vary quite a bit depending on how much you have on it to pay off. With a personal loan you know from day one exactly how much you have to pay off each month, and for how long those repayment terms will last.

To find out more about taking out a personal loan with First4Commercial please feel free to speak to our friendly team on 01277 620083. Alternatively, email us at info@first4commercial.com and we’ll arrange a suitable time to contact you.

27Aug2018

A Quick Guide to Commercial Mortgages

What is a commercial mortgage?

A commercial mortgage is loan used to buy a commercial property, such as an office building, industrial factory, or retail space. This type of mortgage differs from a traditional residential mortgage, typically being a much larger loan that comes with higher interest rates and costlier deposit.

What are the benefits of a commercial mortgage?

The main advantage of a commercial mortgage is the amount you can borrow. As the loan is designed to pay for a commercial property or purchase an entire business, the value of the loan is significantly higher than other lines of credit, such as a residential mortgage or business loan.

As a result, commercial mortgages allow businesses to grow and expand their operations, whether it’s investing in new property or taking over a smaller business.

Understanding commercial mortgage rates and borrowing amounts

A commercial mortgage usually comes with a minimum borrowing amount, typically around £50,000, as there are high administrative costs associated with loans of this amount.

Furthermore, lenders require borrowers to provide a percentage of the loan in a deposit, which varies from around 20% to 40% depending on the lender. So, any business looking for a commercial mortgage must have cash reserves to pay the deposit.

Also, commercial mortgage interest rates are either fixed or variable, meaning there are various options available for loan terms and interest rates. The length of the loan can vary significantly too, with mortgages available for just a few years and other that last for decades.

23Aug2018

A Quick Guide to Mortgage Brokers

What is a Mortgage Broker?

A mortgage broker is an expert in mortgages, providing mortgage advice and acting as a point of contact between borrowers and lenders.

Not only do they recommend the best types of mortgages based on your circumstances but act on behalf of the borrower to get the best mortgage possible, such as searching for the best mortgages, contacting banks, negotiating fees etc.

What are the benefits of a Mortgage Broker?

There are various reasons to use a mortgage broker, most notable receiving expert advice from someone that works directly in the industry. Mortgage brokers have contacts with various institutions that helps them get better deals than you would on your own.

They also provide mortgage advice for those interested in applying for a loan, give suggestions on suitable mortgages, and looking in the market for the best mortgage they can find.

This improve the chances of getting a great deal on mortgage and removes much of the hassle associated with finding a mortgage, so its very convenient for many people looking to buy a home.

Mortgage Broker Fees Explained

It is important to remember that mortgage brokers charge fees for their services, with rates varying from each broker, so be sure to shop around for the best rates.

For instance, a broker charging a fixed rate costs a flat fee for all the services, commission-based brokers are paid by the lender they secure the loan with, while commission-based brokers take a percentage of the final selling fee, while other brokers charge.

15Aug2018

A Quick Guide to Commercial Mortgages

What is a commercial mortgage?

A commercial mortgage is loan used to buy a commercial property, such as an office building, industrial factory, or retail space. This type of mortgage differs from a traditional residential mortgage, typically being a much larger loan that comes with higher interest rates and costlier deposit.

What are the benefits of a commercial mortgage?

The main advantage of a commercial mortgage is the amount you can borrow. As the loan is designed to pay for a commercial property or purchase an entire business, the value of the loan is significantly higher than other lines of credit, such as a residential mortgage or business loan.

As a result, commercial mortgages allow businesses to grow and expand their operations, whether it’s investing in new property or taking over a smaller business.

Understanding commercial mortgage rates and borrowing amounts

A commercial mortgage usually comes with a minimum borrowing amount, typically around £50,000, as there are high administrative costs associated with loans of this amount.

Furthermore, lenders require borrowers to provide a percentage of the loan in a deposit, which varies from around 20% to 40% depending on the lender. So, any business looking for a commercial mortgage must have cash reserves to pay the deposit.

Also, commercial mortgage interest rates are either fixed or variable, meaning there are various options available for loan terms and interest rates. The length of the loan can vary significantly too, with mortgages available for just a few years and other that last for decades.

6Aug2018

A Quick Guide to Business Loans

What is a business loan?

A business loan is a type of loan provided to commercial organisations seeking to expand their operations. Available as a short or long-term loan, business loans are used for a variety of business expenses, such as hiring new staff, purchasing new inventory, moving property, or paying off debts.

What are the benefits of a business loan?

A business loan offers a range of benefits for an organisation, from providing an injection of cash flow to providing some financial respite during tougher times. Also, business loans come with various terms to suit each type of business, with both long and short-term borrowing options available.

Newer businesses can better establish their organisation with a business loan, while others can use the loan to growth their business further, so there is no end to potential advantages of a business loan.

Types of business loans

When applying for a business loan there are two options available – secured and unsecured.

A secured loan involves borrowing money against a certain asset as a form of collateral. Should the loan not be paid back on the agreed terms then the lender may sell the asset to pay off the debt, making it a riskier option for a business.

Unsecured loans are the opposite, allowing a business to borrow money with needing to use a company asset as a form of collateral, therefore being viewed as a far more low-risk type of business loan.

6Aug2018

A Quick Guide to Bridging Loans

What is bridging loan?

A bridging loan is a type of short-term designed to bridge the period between due payment and available credit. Perhaps the most common use of a bridging loan is to purchase property before a mortgage has been cleared, making a very useful form of credit in various situations.

Bridging Loan Benefits

The main benefit of a bridging loan is being able to make a quick purchase while waiting for a line of credit to clear.

For example, if you want to buy a property that is only available for a short period, but your mortgage application has yet to be approved, then a bridging loan can be used to bridge the gap between buying the property and receiving your mortgage.

Another example of this would be buying a new property before your current home has sold. As this can take longer than anticipated, a bridging loan allows buyers to purchase a new property while awaiting the sale of their current property.

Bridging Loan Rates

It is important to understand the rates of a bridging loan.

As a short-term loan, bridging loans come with higher interest than most other loans, especially mortgages, with an average monthly interest rate of around 4% in most cases.

Also, admin fees are commonplace for bridging loans, so be mindful that there are additional costs compared to a mortgage.

That said, as bridging loans are intended for short-term use only, the higher interest rates aren’t as expensive if you pay the loan off as soon as you secure a mortgage or sell your property.

27Jul2018

How to Choose a Mortgage Broker

When securing a mortgage finding the best deal could potentially save hundreds towards your monthly payments. A mortgage broker can get a fantastic deal for a mortgage and help save thousands, so it’s often a worthwhile investment, providing you choose the best broker to secure your mortgage!

Here’s some tips for how to choose the best mortgage broker:

Do your research

You can find a great mortgage broker online with a bit of research, so be sure to start here to check for potential candidates. Search for ‘mortgage broker near me’ in Google to a find a nearby practice, as this is the best bet for finding a broker than knows your local market, which is important for getting a good deal.

Are they paid by commission?

You can either do this during the research phase or simply contact them directly to find out their fees. Most brokers are paid by commission of the loan amount by the lender, typically 0.35% of the transaction value, but this won’t impact the overall fee of your mortgage.

Do they charge a fee?

There is also change that the broker will charge a flat free on top of the commission, although some charge a fee and waver the commission entirely, while some let you choose between both. Never go with a broker charging more than 1% and consider if their rates could pay for themselves in the money they could save on your mortgage

Qualfications

Always ensure the broker is suitably qualified! Not all come with the same level of qualifications, and some don’t even have any, so always look for a qualified broker as they are more likely to provide the best service possible.

20Jul2018

What Does a Mortgage Broker Do?

Applying for a mortgage is never an easy process. Whether a first-time buyer or applying for refinancing, mortgage applications are a long, complex process that can leave you tearing your hair out for weeks on end.

Yet there are ways to avoid the stresses of mortgage application, such as a hiring a mortgage broker. An expert in mortgages, a broker offers a range of services that makes the application process far easier, such as searching for deals, contacting lenders, and negotiating rates and fees.

Here are some of the services available from a mortgage broker:

Free Mortgage Advice

Mortgage brokers offer a wide range of advice regarding a mortgage, much of which is completely free of charge. For instance, if you have yet to apply for a mortgage you can still receive free advice from a broker before hiring their services.

Because some brokers get their final fees as a commission from a mortgage lender after the loan is fully processed, it’s possible to get free mortgage advice from many reputable brokers.

Mortgage Application

One of the main services of a mortgage broker is loan application. After a broker recommends certain mortgages, they then make applications for said loans on the borrower’s behalf. This includes the various paperwork required for an application, as well as speaking with lenders on your behalf on the various aspects of the application.

Mortgage Negotiation

Applying for a mortgage is only half the work of a broker – they also negotiate most of the loan deal. This ranges from getting the best terms possible on the mortgage to helping waver fees for certain aspects of the loan. As they are well connected with lenders and other industry insiders, a mortgage broker’s ability to negotiate a better mortgage is viewed as one of their strongest assets.

12Jul2018

Things to Know About a Business

Anyone looking for a business loan has likely been told about the difficulties of securing this type of credit. Due to the high risk for a lender, most business loan applications are rejected, leading to the belief that it is almost impossible to get this type loan.

Despite this, there are many benefits of getting a business loan, and it’s often easier to get approved than many expect. Here are some useful things to know about a business loan!

A business loan is usually cheaper than a personal loan

On of the reasons that a business loan is tougher to get approved than a personal loan is that they are usually cheaper in the long term. Given the wide range of business loans available, it’s possible to get a loan with the right terms that make it far cheaper than getting a personal loan with a similar amount

A business loan can be better than using savings

Those that don’t receive approval for a business loan may use their savings to cover some of the expenses instead, but this is a risky move and one worth avoiding when possible.

Personal savings tied up in a business severely restricts what you can do with your money, espiecally if an emergency where to occur, be it personal or business related. Because borrowing rates are usually quite cheap for a business loan, it’s almost always better to use one as opposed to your savings.

You can get a business loan with bad credit

It’s a common misconception that you cannot get a business loan with bad credit, but if you prove to a lender you can make the repayments and they are confident in your ability to do so, it is more than possible to secure a business loan with bad credit.

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