What Lenders Need to Know

* Introduction
* Overview
* What We Need to Know
* Pros and Cons
* Repayments
* Types of Lender
* Getting a Quote
Any mortgage lender will want to be sure that your business is on a sound financial footing before agreeing to a commercial mortgage.

A lender's main concerns are that:

  • you will be able to repay the money
  • the property is worth enough to cover the amount borrowed if you default

Do not over-estimate the value of a property. A lender will almost certainly appoint a surveyor or property appraiser to inspect and estimate the value of the premises.

You will be asked to provide information about your business' financial performance, which will probably include:

  • audited accounts for the last two years
  • indications of current performance
  • a profit-and-loss forecast for the next year
  • business bank statements for the previous six months
  • CVs or profiles of each partner or director in your business
  • asset and liability statements for each applicant

If you are buying a business and property combined, it is likely you will need to supply the lender with additional information, such as:

  • why the business is being sold
  • projections on how the business is expected to grow
  • details of any personal investment there might be
  • credit status of the business

Bear in mind that you will almost certainly need to find a deposit of between 20 to 30 per cent of the purchase price of the property.

 

 
GET A QUOTE
If you would like a quotation, please use our Mortgage Quotation Wizard and we will ensure you get the best deal available for your business.

Mortgage Wizard

CONTACT US
If you prefer to speak to a mortgage consultant, please visit our contact page and use the contact method you prefer, Email, Telephone or Post.

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Reproduced with the permission of Business Link (http://www.businesslink.gov)

The overall cost for comparison is 10.53% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. Early repayment charges apply. A broker fee of 1% may apply.  Your home may be repossessed if you do not keep up repayments on your mortgage.Our Financial Resources directory is available here