Under the sub-brand ‘Choice’, the range will be distributed exclusively via the intermediary channel. It is the first time the company has focused upon delivering a product for the conforming business customer.
The product is priced in the range of 2 to 2.5 per cent above LIBOR up to 75 per cent LTV for advances of £1.5 million and below. 85 per cent LTV is also available within the criteria.
To qualify a customer has to provide one year’s professionally prepared accounts providing 1.3 servicing cover and three month’s bank statements. The client is not required for an interview.
Stephen Johnson, sales and marketing director at Commercial First, said the move is the result of intermediary feedback. “We believe it delivers wider choice to the intermediary and business customer but has retained the values that have made Commercial First successful – simplicity and premium size,” he said.
Barbara Goldsmith, managing director of Stratford Properties, said: “Providing one year’s professionally prepared accounts showing 1.3 servicing cover could be a real challenge, especially for a new business. Would the bank accept a healthy balance sheet even if the profit and loss were showing a loss? I see this often with new businesses. If so, the deal has more potential.”
Commercial First has also enhanced its non-conforming range. Johnson explained: “We believe the combination of offering 85 per cent LTV, cheaper pricing, shorter ERCs and longer interest-only periods is a sign of our commitment to the non-conforming sector.”
