Pink Home Loans has announced a number of improvements to the commercial lending criteria offered by Commercial First.
A new dedicated range of near prime products offering rates comparable to those of high street banks will be aimed at borrowers who only partially satisfy the criteria required by those banking institutions.
The loan to value has increased to 85% on advances up to £500,000. Loans up to 75% loan to value are also now available on advances up to £1.5m. Clients are not required for an interview, and can qualify for the product by providing just one year accounts, 3 months bank statements and a clean credit history.
Tony Jones, managing director at Pink Home Loans comments: “This product offers a much broader scope to our brokers. For the first time the Commercial First mortgage approach has been extended to appeal to near prime as well as non-conforming customers. To-date quarter 3 has seen a 50% increase in our business levels compared to quarter 2 and I’m confident that these criteria changes will result in further business.”
Stephen Johnson, Sales and Marketing Director at Commercial First, added “We are offering greater flexibility on criteria than a customer would receive from a high street lender, while offering them a faster service with less disruption to their business operation. This has been achieved with pricing comparable to that of mainstream commercial lending”. He went on to add that the existing non-conforming product range has also been radically improved, “We believe offering 85% LTV, cheaper pricing, shorter ERCs and longer interest only periods is a winning combination for the intermediary.”
Summary
Choice – Near Prime product
- Loans up to 85% loan to value on advances up to £500,000
- Loans up to 75% loan to value on advances up to £1.5m at a margin of 2.5% above libor
- 3 year interest only period available with balances over 27 years capital and interest
- No interviews required, just one years accounts, 3 months bank statements and clean credit history. Servicing cover of only 1.3 times adjusted net profit required
- Any purpose acceptable.
- Early Repayment Charges of only 3% for the first 3 years and 1% thereafter
Core range of non-conforming products
- 85% loan to value available on loans up to £500,000
- Cheaper margins across the whole range and specifically the margins decrease as the loan size increases
- 3 year interest only period replaces the 1 year option (81-85% loan to value lending excluded)
- Early Repayment Charges reduced to 6% for the first 3 years and 1% thereafter
- For hotels with less than 20 beds refer to standard loan to value terms. For those over 20 beds loan to values are 5% lower than standard
Same uncapped commissions and service
