The Commercial First Illustration (CFI) will give brokers and their clients a one-page summary of costs and charges for the commercial mortgage contract. It has been designed to make the mortgage terms transparent for clients.
The CFI will be delivered to the broker within two hours of an application-in-principle being submitted, either online or by fax. It contains details of the terms of the mortgage contract, including mortgage payments during and after fixed rate or interest only period expiry, together with associated fees and early repayment charges payable.
Stephen Johnson, sales and marketing director for Commercial First, commented: “This reinforces our commitment to simple, transparent commercial mortgage lending. It is important for brokers and borrowers to understand fully the terms and conditions of the mortgage contract, so that the borrowers can have complete peace of mind and certainty about their future. We believe it is important that nothing is hidden and that brokers can recommend, and customers contract, with absolute confidence.
“Much has been made about the attraction of unregulated markets post-‘Mortgage Day’; this voluntary initiative illustrates how serious we are about shaping the future of the commercial mortgage market, and hope it sets a benchmark for others.”
Melanie Bien, associate director for Savills, said: “Commercial mortgages are very complex and the more information that can be given to the client, the better. Commercial mortgages are far from standard and something that is more standardised and breaks everything down is good, especially for brokers who don’t deal with commercial cases on a regular basis. If it proves popular with brokers, I’m sure other providers will follow.”
