FAQs

• What role do you play as the Broker?
  We manage your application from initial enquiry to completion.  We will liase with Shawbrook Bank on your behalf and other relevant professional to ensure matters go smoothly, keeping you advised of progress at all times.
• Do you charge a Broker fee?
  Yes. However this is only payable if the business mortgage is drawn. This is typically 1% of the amount we raise on your behalf, subject to a minimum of £1500 + VAT.  This covers our professional time and expenses.
• Will you help me with the form filling and other paperwork?
  Yes we will.  We will assist you in completing the application form and provide you with a list of other documents that Shawbrook Bank requires.  We will then collate all the paperwork, check it and then package the information before submitting it to Shawbrook Bank with our summary report.
  
• How much can I borrow as a percentage of my property value?
  Currently Shawbrook Banks loan-to-value ratio is 75%, but this will depend upon other factors including the experience and credit history of the applicant, their ability to service the mortgage and the quality and type of the property.
  
• What’s the minimum and the maximum that I can borrow?
  Minimum: £50,000.
  Maximum: £750,000. Larger amounts considered.
  
• How long can I have to pay the commercial mortgage back?
  Minimum term: 3 Years.
  Maximum term: 30 Years.
  
• What’s the minimum property value that will be considered?
  The minimum value is £75,000.
• I am self-employed, will Shawbrook Bank look to agree a Commercial Mortgage for me?
  Yes, they are able to lend to individuals, sole traders, and limited companies.
  
• What security is required?
  Shawbrook Bank will require a legal charge over acceptable property security and a personal guarantee from directors of limited company applicants.
• What are the advantages of a commercial mortgage over renting
  1) By purchasing the property with a commercial mortgage you have the potential gain on the asset (the freehold building)
  2) You will not be at the mercy of your landlord over rates and occupancy term as the commercial mortgage rate will generally track Base rate or LIBOR rate.
  3) All money that is paid each month on the commercial mortgage will gradually reduce the mortgage balance (assuming a  capital repayment mortgage is taken), whereas with rent you are not gaining any long term equity.
• Will I need a deposit to obtain a commercial mortgage?
  Shawbrook Bank will look at lending 75% LTV on commercial mortgages with no additional security, however if you are able to provide additional security i.e. your home or an investment property, then they could arrange a commercial mortgage up to 100% of the value.
• Can I get a commercial mortgage on my commercial property to consolidate my debts?
  Yes, if you own your commercial property and wish to arrange a commercial re-mortgage to consolidate your business debts, then Shawbrook Bank can look at this option as long as the additional funds are required for a legal purpose.
• How long does it take to complete a commercial mortgage?
  Typically the time scale is 6 – 8 weeks to include submitting the application, the offer being issued, the valuation being done and the respective solicitors completing their work.
  Be assured that we will endeavor to complete your commercial mortgage application as quickly as possible and will keep you fully updated from the start of the commercial mortgage all the way through to when your commercial mortgage funds are released.
• Does Shawbrook Bank offer fixed rates on their commercial mortgages?
  At the current time Fixed Rate Commercial Mortgages are not available through Shawbrook Bank.
• Can Shawbrook Bank provide Interest Only Commercial Mortgages?
  If the commercial mortgage is being used to purchase or re-mortgage an investment property, then interest only terms of 3, 5 and 10 years are available.  The LTV cannot exceed 65% and there is an interest premium of 0.25% on the 10 year term.

 

 

© 2012 : CommercialPropertyFunding.co.uk is owned and run by Sterling Capital Reserve Ltd Sterling Capital Reserve Ltd Sterling House, 10 Wheatcroft Business Park, Landmere Lane, Edwalton, Nottingham NG12 4DG Tel: 0115 984 9800 Fax: 0115 921 5550 Map and Directions to our Office

ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EARLY REPAYMENT CHARGES APPLY. A BROKER FEE MAY APPLY.

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