Commercial Mortgages Lending Criteria
Lending criteria is based on several things that you need to be aware of before you approach a lender for finance.
Firstly they will require a credit reference on the proposed business partners personal profile to see how credit worthy they are personally. Then they will look to see how credit worthy the business is by asking for financial accounts if available, or financial projections in the event of a new venture where previous accounts do not exist. They may also ask for a copy of you business plan which will give them more information not only about the business, but other key factors like marketing, operations, sales strategy and more information on the owners.
Finally they will want to see you as the borrower commit some of your own resources. Deposits of up to 15% are common place and the rule of thumb is; the more you put in to the business, the better chance you have of securing the finance you need.
Lenders will frequently impose restrictions in the mortgage offer which may prevent you from subletting or using the business premises for other things than originally intended. As you can see, securing commercial finance is very complicated and you should seek specialist advice from one of our 'Commercial Team' who are best placed to advise you and help secure the finance you need.
What information do lenders require?
Lenders are in the business of making money, not losing it. So before they make any decision, it is likely they will require the following information:
- Personal Asset & Liability statements
- Commercial Asset & Liability Statements
- What is the repayment vehicle
- Is the property of sufficient value to be used as security
- Can you afford the repayments
- Audited accounts if available
- Financial forecasts for the next few years
- Business bank statements
- Personal Bank Statements
- Identification and Proof of Residency
- Business Plan
- Applicant CV's
At North Mortgages our Manchester Mortgage brokers take care of everything on your behalf. Remember, we source insurance from the whole of the market, so you know your getting the best and cheapest mortgage rates available and all tailored to suit your personal circumstances.
Call NOW on: 08000 949 595 or contact our whole of market brokers & mortgage advisors in Manchester today to arrange a Call Back.
