The new stable of products signal the arrival of CFM as a major force in the all-status market and enhance its reputation as one of the most innovative lenders operating in the UK today.
Major features of the new product include an interest rate that starts at just 2.5 per cent above LIBOR, a maximum loan size of £2 million – and loan-to-value (LTV) limits of 75 per cent on advances of up to £500,000, 70 per cent on loans over £500,000 and an LTV ceiling of 60 per cent on advances of £1 million or more.
Commercial First is confident that the product will appeal to a broad spectrum of small and medium sized business borrowers. The product enables borrowers to provide a variety of supporting financial information ranging from two years statutory accounts through to those wishing to utilise a declaration of affordability supported by an accountant’s letter.
“We have had a tremendous impact on the market in our first year,” commented Stephen Johnson, sales and marketing director of Commercial First. “I am excited about 2004. The company will continue to challenge traditional obstacles in the commercial market as we deliver transparent products quickly and with minimum business disruption for the borrower. The product provides an all-status solution and even greater scope for our introducers to support their clients and Commercial First.
“The product has been designed by listening and learning from those intermediaries driving forward the growth in the industry. We are a young, innovative company that is committed to becoming the number one provider of specialist mortgages to the SME market. We will achieve that goal by continuing to look at ways in which we can improve our service and product range.”
Giles Codrington, Director of ASC Finance For Business, concurs. “We are a strong supporter of Commercial First because the company is committed to offering products that meet a real need in the commercial sector,” he said. “The new SME mortgage is a worthy addition to Commercial First’s portfolio and I’m confident it will be very popular with clients and brokers alike.”
Simon Ryder of Solent Commercial believes that the new mortgage will be of great attraction to the discerning businessman or woman.
“We have a lot of demand from businesses that benefit from having independence from their relationship bank and find the speed in which a specialist lender can operate crucial. Finding a product and lender to meet these needs has traditionally been difficult. Commercial First continues to set the pace and provide a real alternative to the high street lender.”
And Stephen Johnson added: “The business was established to bring the success of specialist lending to the commercial market. We have improved the product, which along with other initiatives currently under development, signals our commitment to becoming the first choice provider for SME businesses and commercial intermediaries. “
