Finance Blog | Commercial Lending, Essex, London | first 4 Commercial
7Jul2014

The Mortgage Squeeze

The Mortgage Squeeze

If you’re trying to buy a house, then the news that the overheated housing market is cooling will be welcome. However, tougher new mortgage lending rules are reducing the amount of mortgages being approved. According to figures from the British Banking Association, the number of mortgages being given to borrowers have fallen since May last year, with the total amount of mortgages down to 65, 132 in May 2014 from 70, 294 during April. Overall mortgage approvals are down by 3.5% compared to May last year. However gross mortgage lending rose to £12.2bn in April, which is the highest since August 2008.

The introduction of the Mortgage Market Review (MMR) at the end of the April means mortgage applicants are being more thoroughly scrutinised and asked to undergo ‘stress tests’ in order to assess their ability to pay for the mortgage. As a result, this tougher criteria could be responsible for May’s figures, although the BBA say it’s too early to say.

The reason for limiting mortgages is largely down to fears of a housing bubble and fears of a rise in interest rates, which pose a threat to the entire economy. Bank Governor Mark Carney has warned that an interest rate could be on the cards before the end of the year.

If financing is proving a problem for you, then you could consider alternative options such as a bridging loan if you have existing assets. Bridging loans are ideal for properties that banks are reluctant to grant mortgages for, including those bought at auction and properties that need refurbishment. Call us to find out more about your options.

For more help and useful information go to www.bridgingloansin.co.uk

first4commercial.com

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

27Jun2014

The rise of bridging loan lending

Bridging loans are on the up, at the same time as traditional mortgage approvals are down. Latest figures from the Association of Short Term Lenders’ (ASTL) show that there has been an 83% rise in bridging loan applications during the first part of this year, compared with those of 2013.

The reasons for this are varied. A relaxation in the planning laws has led to more developers converting office space to residential premises, as housing demand remains high. Increased consumer confidence is also thought to be driving demand, and churn rate, in which bridging loans are refinanced by another lender have also been popular. The enduring appeal of the bridging loan can also be explained by the flexibility of these loans to plug any gaps in finance, especially where property completions are concerned.

So what are the other key advantages to bridging loans? Speed of approval and arrangement are one of the chief benefits, and with the ability to borrow without having to endure ‘stress tests’ then bridging finance represents a clear advantage to borrowers. And if you’re keen to make the most of the booming property market, then a bridging lender will make development finance available to you for properties that commercial mortgage lenders won’t ordinarily cover. Bridging finance is also increasingly being used for land acquisitions where planning is required before development can start.

So as the property market continues to flourish, and bridging finance becomes ever more competitive, investors and developers are enjoying the rewards of these loans.

For more help and useful information go to www.bridgingloansin.co.uk

first4commercial.com

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

13Jun2014

Award winning service again 2014

Acquisition International Award Winner 2014

Award winning service again in 2014, first4commercial are proud to announce that we have once again won an award for the second year running. This year we have been awarded Independent Commercial Mortgage Broker of the Year – UK 2014 with Acquisition International.

This is in addition to last years award for Boutique Commercial Mortgage brokerage 2013. We feel that this once again demonstrates to our customers and business partners that we have wholly focused on giving great advice, customer service and always keep striving to go the extra mile wherever we can.

Thanks again to Acquisition International for this recognition and thanks to the first4commercial.com team, keep up the hard work!

first4commercial.com

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

30May2014

Birmingham Midshires mortgage?

Do you have a Birmingham Midshires mortgage? Are you currently paying their Standard Variable Rate (SVR)? Or is your fixed rate coming to an end?

first4commercial.com offer a FREE product transfer service to all our existing and new customers. Even if you used another company to obtain your Birmingham Midshires mortgage we can still help. The current Standard Variable Rate (SVR) with Birmingham Midshires is 4.84% (as of 30/05/2014). We can offer a FREE switch to a new 2 year fixed rate from as little as 3.79% which can and has saved clients hundreds of pounds.

Mr & Mrs R “We saved over £110 per month by using the FREE product transfer service with first4commercial. This is more than £1300 per year back in our pockets”

Mr P “All I had to do was provide a little of my information and first4commercial.com took care of everything else for me. Great service, very happy”.

We will take care of all the paperwork and will provide you with a no-obligation illustration to show you what you will pay on your new rates. All you need to do is get in touch with one of the team today to get the process started.

With the threat that the Bank of England Base Rate will be increasing soon, it is even more important to make sure you get your investment properties onto a fixed rate so that you know your monthly payment is guaranteed in the short term.

Start saving money today with first4commercial.com on your Birmingham Midshires mortgages.

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

first4commercial.com

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

6May2014

Small Personal Loans

Bank of England data shows that high street lending to business fell in recent months, but the good news is that personal loan rates are now much lower than in recent years. As a result, loan demand is rising fast driving something of a ‘loan price war.’

For any amount up to £25,000, a small unsecured personal loan is a good way to fund a short term cash crises or invest in a business venture. And the advantages of unsecured loans are many. Firstly, you’re normally able to choose how long the term of the loan is (reducing interest costs), Secondly, you won’t lose your home should you fall behind on payments, and thirdly, you benefit from fixed payments.

So what do you need to bear in mind before taking out a loan? As with any financial product, it’s important to consider the costs, as well as the terms. Remember that your credit history will affect the interest rate, as well as the length of the loan. Our connections with Peer to Peer lenders in the UK, offer a popular and cost effective option for potential borrowers, providing good value loans for a variety of purposes. Available to both those who own their own home as well as tenants, and with no early repayment charges, those with a clean credit history will benefit from the cost and flexibility of these loans. To apply, simply fill in the personal loan application form, and you’ll receive an online decision within seconds.

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

first4commercial.com

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

6May2014

Bridge to Property

Many more people are taking advantage of house price growth and rising rents to launch into investment properties or buy- to-let, and taking out a bridging loan to fund the project is the ideal way to help finance it. Bridging loans can provide the additional finance to be used for refurbishment, to help achieve completion or to buy discounted property at auction. As long as there’s a clear exit strategy in place, a bridging loan is a quick and easy way to secure finance.

So when might bridging finance for a property purchase be suitable?

Banks can be tricky about buildings requiring redevelopment, and are unlikely to lend money for properties needing renovation. The big advantage of bridging finance in property is that there are no restrictions on buying for renovation. Investing in refurbishment means that once the property is improved, you’ll benefit from either higher rental income, or re-selling for profit. As many bridging lenders offer rolled up or retained interest payments, then neither do you need to worry about monthly repayments.

If you’re buying at auction, then quick bridging finance will help you complete within the standard 28 days, and properties being sold at below their market value can also be secured before they’re snapped up. The beauty of bridging is in the flexibility. So property investors can move fast, and increase and improve portfolio’s, without stepping foot in the bank. Contact one of our qualified advisors for more advice on bridging for property – we’ll help you find a way.

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

first4commercial.com

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

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

19Feb2014

Bridging loans

Bridging loans – Let first4commercial compare the market for you! Over 70+ lenders.

Bridging loans or bridging finance can be used in a variety of ways aside from the usual chain-break scenarios. Bridging loans have fast become one of the quickest and most reliable forms of finance for those who require speed or flexibility. Speed is the most common reason for using bridging finance and this is when it comes into its own. We assist lots of clients when they are purchasing property at auction or have a tight deadline to meet and a conventional mortgage will simply not be ready in time.

Down-sizing is also a very common reason for clients needing to use bridging loans. Age is always a factor with mainstream mortgage lenders and so this is where bridging loans really fill the void. We have lenders who do have an age restriction and have lent to customers who are in their late nineties. This is because they look at the property and the equity within it when assessing applications, the client is secondary in this process. With the help of rolled up interest payments, so you do not need to make a monthly payment, affordability for any loan is also taken out of the equation. This is why a lot of our older customers, who wish to down-size their property but do not want to wait for their current property to sell, use this option.

There has been a lot of demand for bridging loans from clients looking to extend/renegotiate short lease properties. We are able to assist with the types of applications even when a short lease property is in probate for example. The usual, refurbishment pending sale, below-market value transactions, divorce settlement and debt repayments are also available and remain a mainstay of the bridging market.

first4commercial are able to access over 70+ lenders with over 220+ products available we aim to find not only the cheapest rates but the best overall package of bridging finance available in the market today. We have years of experience in this sector and remain at the forefront with our transparent Heads of Terms illustrations which provide you with all the information about the best available products before you decide if you want to go ahead. The enquiry stage is completed FREE of charge on your behalf so you have access to our expertise and knowledge without needing to pay any upfront fees.

Our fee structure is clear and concise and remains the same if you are borrowing £5,000 or £1m+. We charge an administration fee of £195.00 if you decide to proceed with our illustration and we charge a 1% broker fee (min £999) which is payable once an offer has been issued, but not normally collected until completion or cessation of the case.

We can obtain, first, second and even third charge bridging loans and with the help of our sister company Central Mortgages (Essex) Ltd we can assist customers with FCA regulated bridging loans as well. With rates from 0.65% and loans amounts available from £5k to amounts of over £5m+ we are your first and last port of call when comparing bridging loans or bridging finance.

Bridging loans can be taken from 1 month up to 36 months and typically up to a maximum of 80% of the value of your property (on a first charge basis). The higher loan to values are typically only for properties in prime London and South East postcode areas but we can advise you accordingly as required.

Compare the bridging market with us today and let us do all the hard work for you.

For more information please contact us today.

first4commercial.com

f4c

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

11Feb2014

Unsecured business loans up to £150,000

Unsecured business loans up to £150,000. Secured available up to £1 million.

We are able to offer unsecured business loans to UK limited companies, sole traders and partnerships up to £150,000. Secured loans of up to £1 million is also available.

The process is uncomplicated and quick. Your business needs to have been trading and can provide accounts for a minimum 3 years. Good credit is essential and more often than not, the rate of interest available are better than or equal to high street banks.

If you need money for working capital, expansion plans, refurbishment of your business premises or asset and machinery purchases. Contact us for full details and see how we can help you get the money you need, quickly, cheaply and get your plans into action faster than normal high street routes.

first4commercial.com continue to offer clients the best products in the current finance market and will always be there to provide the right advice to suit your needs. If there is a cheaper option available to achieve your aims we will find it.

For more information please contact us today.

first4commercial.com

f4c

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

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

4Feb2014

Bridging loans and commercial finance

Bridging loans and commercial mortgages from first4commercial.com, specialist commercial and bridging finance brokers.

Here at first4commercial.com we have been helping hundreds of customers access the cheapest and best bridging and commercial finance deals on the market. We have access to 50+ bridging lenders throughout the UK and over 30+ commercial mortgage lenders too. These range from main high street banks through to private banks and lending institutions.

We pride ourselves on our customer focused approach and always make sure that whatever advice we provide is clear, transparent and in the clients best interest. We will even (and have) recommend putting you in touch with another company if this means the finance on offer is cheaper for you!

Bridging loans and commercial finance/mortgages can be a minefield for the unwary. This is why, by using first4commercial.com, you will be receiving expert advice. We will help you to navigate through, providing you with helpful advice from day one right until the day of completion and beyond. We always keep in regular contact with our clients to make sure they have everything they need.

We have a transparent application process and we will provide you with all the information you need to make sure you are making an informed decision. All enquiries receive a full Heads of Terms illustration which shows the parameters of any available bridging loan or commercial mortgage and provides you with a comprehensive breakdown of the costs involved.

We are also able to assist clients with Buy to let mortgages, personal loans up to £25k and business loans up to £250k. Our sister company Central Mortgages (Essex) Ltd is also able to assist clients with regulated residential mortgages and life insurance. We have pretty much all angles covered should you need any help or advice.

If we do not know the answer you are looking for then I am sure we will know someone that does! We are full members of the National Association of Commercial Finance Brokers (NACFB) and members of the Association of Bridging Professionals (AOBP).

For more information please contact us today.

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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