The product will cater for properties valued from £25,001 up to £150,000 at a maximum 75 per cent LTV for full status and self-cert cases.
The commission payment represents 4 per cent on the minimum loan of £25,001 and will amount to £1,000 or the agreed terms, whichever is higher.
Title insurance is included at £135 plus IPT, with legals of £200. In addition Paul Marland, sales & marketing director at Base Commercial, believes that the £250 arrangement fee gives brokers scope to charge an additional fee to maximise revenue.
Marland added that up until now small commercial mortgages were a bit of a 'conundrum' for brokers, generating as much paperwork as a larger deal which was not mirrored in the proc fee.
Nick Reeves, TBMC's head of commercial lending, said: “Not only will the product appeal to intermediaries but also to borrowers, as it comes with a low arrangement fee, no commitment fee, highly competitive legal fees and title insurance with pricing based on lower margins than industry norms.
“In addition, the fast-track facility will appeal to borrowers who want to complete arrangements quickly and not get bogged down by protracted legal processes.”
