The Commercial Investment Mortgage Plus (CIM+) range of products has straightforward criteria, requiring the market rent of the property to cover just 100% of the mortgage repayment and the applicant to provide evidence of good conduct on another investment property, either residential or commercial. The product can fund up to 85% of the property value and a range of interest-only options are available, including interest-only payments for the full life of the loan. The products are available with a 3 year fixed rate and margins start at 1.65% above 3 month libor, paying an uncapped procuration fee of 1%.
Commenting on the launch, Stephen Johnson Sales and Marketing Director of Commercial First said “Eight per cent of all commercial property purchases in 2005 were made by private individuals, and we believe this market alone to be worth £4bn annually. Landlord appetite in the Buy-To-Let sector remains strong, and investors are becoming increasingly aware of the benefits commercial property can add to their portfolio.
“Total annual returns on commercial property have been nearly 20% in the past two years, and whilst this is predicted by the RIC’s to slow to around 9% in 2007 – commercial property has consistently outperformed other traditional investments over the last 20 years.
“We believe the simplicity of this product will appeal to many intermediaries and their clients. Combined with our status, self-cert, and adverse products this addition means our product range is amongst the widest offered by any commercial lender in the market.”
