CHL Commercial was piloted earlier this year and intends to target commercial investment owner occupied trading entities and larger houses in multiple occupation residential units.
It will take a self-cert approach on loans up to £1.5 million and rates will be charged from Bank Base Rate (BBR) plus 0.99 per cent to BBR plus 2.99 per cent, depending on the deal. The lender will offer brokers 1 per cent uncapped proc fee.
Interest only terms will be available up to the life of the loan and sectors covered include shops, offices, light industrial units and pubs. CHL Commercial will not lend towards environmentally challenging units, such as petrol stations or development finance.
Mike Healy, head of commercial at CHL, said: “CHL Commercial will provide a unique set of products and will lend towards the goodwill of trading businesses. We’ll also be flexible where strong covenants are offered on investment deals.
“Technology is also important to us and, while applications are paper-based for now, we have plans to provide an online decision-in-principle later in 2007.”
John Ford, director for Mustard Commercial Finance, commented: “It’s a good proposition. There is always space for lenders with the right products and service to come in.”
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