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

Tips to remember when considering a Commercial Mortgage

Before you begin your search for a commercial mortgage, there are a few things you should consider. Commercial mortgages usually last for 15 years or more, and are beneficial for business owners looking to buy a new property.

Although the high street, especially banks are the logical choice for a mortgage, you might consider looking for other financial providers to assist you with your commercial mortgage. You should be able to easily find a specialist commercial mortgage broker who can search the market for you, to find you the best possible deals.

Before you start your application for a mortgage, remember to check your credit rating (or credit score), depending on the rating you have, getting a mortgage may be easy, or it could potentially be very difficult. Some lenders may still accept applicants with a bad credit history, though a good history will give you more choices, and better deals. The more of your own money you’re willing to invest, the more chance you have of securing a competitive mortgage from a financial provider. You should also consider other costs associated with your commercial mortgage, including arrangement fees, valuation fees, and legal fees.

Remember to have your business records to hand, you’ll need them to prove the legibility of your business, and to show your potential lender that you are reliable, and that you will be able to afford the repayments towards the commercial mortgage once needed. You should be able to demonstrate that you can afford the loan.


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.


Great customer service

Giving great customer service, does not only leave you feeling satisfied that you have done your job properly, but leaves the customer satisfied. Satisfied customers will help your business expand and they are more likely to recommend your services to friends and associates.

Our main priority here at first4commercial is our customers. Servicing the needs of our customer is what you we all about, we understand what it is you want from us. By knowing this, our customer service skills will allow us to provide you with not only good customer service, but excellent customer service. At first4commercial, we look at it from another perspective, when we are someone’s customer, how do we like to be treated? Here at first4commerical we pride ourselves on fantastic customer service. As a business always think of ways to improve:


  • Give more to your customer than they will expect. Since the main focus is keeping customers happy, think of ways to elevate yourself above other competitors. What can you give your customers that they cannot get elsewhere?
  • It will benefit your company if you collect regular feedback from your customers. Encourage and welcome any suggestions they have about how you could improve. Listen carefully to what they have to say, whether it be positive or negative. Provide a method that invites constructive criticism, comments, and suggestions.
  • Always take the time to listen. Showing your customer that you are listening by making eye contact with them. Take the time to find out the customers needs by not only listening but asking questions and clarifying, rather than making any assumptions.

Things to consider when taking out a loan

As tempting as taking out a loan can be, finance companies are especially good are finding ways to make extra money from you. Always read the small print and clauses when thinking about taking out a personal loan.  There are many things for you to consider before applying for a loan:

  • As tempting as it is to take out a large sum when applying for a loan, always remember the more you take out and longer you’re paying back the debt, the more interest your likely to be repaying.
  • Always look at the total cost repayable, this includes any interest and any extra charges.
  • Are the monthly payments going to be affordable for you?
  • Check to see if you will be charged if you decide to pay the loan off earlier than agreed. Read the terms and conditions in full before making any rushed decisions.
  • Look at alternatives, how about saving up or using a short-term low interest credit card, always weigh up your options.
  • Look at payment penalties that you’ll be charged, if you miss or are late with making a payment, always make sure you understand all the terms.
  • Don’t fall for gimmicks- many lenders will try to entice people with things like cashback on some loans. Nothing in life is free, there’s normally always a catch. Be sure to read up on things before signing up to anything.

If a loan is your only option for access to money quickly, do your research first and shop around for the best deal.


What are bridging loans?

A bridge loan is a temporary loan that bridges the gap between the price of a new home, and a home buyer’s new mortgage, in the event that the buyer’s home has not yet sold.

The bridge loan is secured against the buyer’s existing home. The funds from the bridge loan are then placed as a down payment for the move-up home. A bridge loan will provide finance on a short-term basis to “bridge” the gap while an individual secures more permanent financing.

How does a bridge loan work?

Sometimes certain lenders may require you to meet a minimum credit score in order for you to be eligible to apply for a bridge loan.

Some borrowers structure their loans, in order to pay off all the existing debt on a property, while others use their bridge loans as a second loan on top of their existing one. In some cases, once your existing home sells, the proceeds go toward paying off the bridge loan, or you continue making payments on your old and new mortgages, using the funds from the loan to stretch your budget. The proceeds from selling your old house still go toward paying off the bridge loan, including all the interest that has accrued.

Here are a few reasons as to why a bridge loan may be the right option for you;

  • It is short-time financing.
  • Usually interest-only payments.
  • If your existing home hasn’t sold, it makes the purchase of your new home possible.

Securing a loan for your new investment

Do you have a business opportunity you don’t want to miss out on? Worrying about how you’ll afford it all? Being successful in securing a loan for your investment can be just as simple as when lending money for a residential mortgage. Whether you’re just starting out, or looking to expand your business, First4Commerical can assist you. First4Commercial are registered with the National Association of Commercial Finance Brokers (NACFB).

Even though funding for small business has become more and more difficult, the advantage of using a broker to help your business, has now become more recognised. Our team of experienced and highly qualified advisers are available to provide you with the right advice and guidance you need. We at First4Commercial take great pride in our outstanding customer service, right from the mortgage process through to completion and beyond. Here at First4Commerical, we have the suitable knowledge and necessary contacts, in order to help find you the best deal.

We search across the whole commercial market, including high street banks and building societies to independent lenders to help us provide the right solution for you.

Even if you have a poor credit history, or unable to provide accounts to show your capable of repaying the loan we may be able to help you still. Maybe consider applying for a smaller loan and ensure you making regular payments, and on time, this will build your credit score for the future.

Ring us today, get the funds you need with the help of First4Commerical. You can make monthly affordable installments, whilst concentrating on being successful.


Understanding the Basics of a Commercial Mortgage

Business owners are often faced with the question of how to make that next step, to grow the company without stretching finances to the limit and putting jobs at risk as a result. Commercial financing provides a sensible, simple and flexible way of doing so.

Know Your History –  Before you apply for a commercial mortgage it is vital that you completely understand your business and its trading history. In order to be successful with an application for commercial credit your trading history will have to be viewed as solid by the lender.

Type of Business – Different types of businesses will be offered different terms for a commercial mortgage. A shop or office for example, might be offered a typical loan-to-value amount of 80%, whereas those individuals looking to lease out their property would most likely have a 75% loan-t0-value maximum.

Importance of Equity – The last thing you want to do is put your business at risk, so when speaking with a lender about the possibility of a commercial mortgage, be very accurate and clear about how much equity is available, before you commit.

First4Commercial has the experience and know-how to help you secure a commercial mortgage for your project. Give us a call today and we’ll be happy to guide you through the process and offer the best routes available for commercial financing to help you take that next step.

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