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The best way we can empower small businesses is by being straightforward

Culture SMEs

The best way we can empower small businesses is by being straightforward

When I talk to small business owners about why they don’t spend more time managing their company finances, “complicated” and “time-consuming” are two...

By Mark Stephens

3 minute read · 10 March 2020

Local expertise is vital if small business owners are going to get the service they deserve

SMEs

Local expertise is vital if small business owners are going to get the service they deserve

3 minute read · 6 March 2020

Creating trust with customers will be our biggest challenge, but the most important one

Culture SMEs

Creating trust with customers will be our biggest challenge, but the most important one

3 minute read · 4 March 2020

We’re building a business bank from scratch

Culture SMEs Technology

We’re building a business bank from scratch

4 minute read · 2 March 2020

Small businesses are losing money by not opening high-interest savings accounts

SMEs Savings

Small businesses are losing money by not opening high-interest savings accounts

3 minute read · 17 January 2020

Technology in banking should enable human relationships, not replace them

SMEs Technology Brokers

Technology in banking should enable human relationships, not replace them

Technology in banking should enable human relationships, not replace them

By Nick Baker

3 minute read · 17 January 2020

Commercial investment mortgage

Our commercial, semi-commercial and specialist buy-to-let products are built for landlords and investors.

Key product information

Criteria	Description
Loan size	£150,000 to £15 million
Repayment type	5-year interest only 5-year partially amortising
Arrangement fee	2.0%
Debt service cover	Commercial: 130% Semi-commercial: 120% Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates.
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Owner-occupied commercial mortgage

Owner-occupied mortgages are at the heart of what we do. We help businesses buy or refinance the buildings they work from.

Key product information

Criteria	Description
Loan size	£150,000 to £10 million
Repayment type	30 year capital & interest 5-year interest-only available at the start of the loan term for loans up to 75% LTV
Arrangement fee	1.5%
Debt service cover	130% Calculated on the rate not including the current account discount Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Owner-occupied hotels	Loans over 80% of VP value must be fully amortising from day one Personal guarantee to be given for any amount in excess of 70% of VP value

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Buy-to-let commercial mortgage

Specialised commercial investment mortgages, designed to fund landlords purchasing residential HMOs and MUFBs.

Key product information

Criteria	Description
Loan size	£200,000 to £15 million
Repayment type	5-year interest only
Arrangement fee	2.0%
Interest cover	130% standard, 145% higher rate taxpayer Gross rent used for residential/ MUFB applications if; evidence of 3 months' loan repayments in cash via bank statements and one UBO/director with Experian Consumer score of 881+ plus a supporting personal guarantee. Otherwise we will use net rent assumption of gross rent minus 10%. HMO properties will always be assessed using gross rent minus 25%
Early repayment charges	5%, 4%, 3%, 2%, 1% (years 1–5)

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Healthcare commercial mortgage

Healthcare is a specialist area, and one where experience matters. We provide specialist sector support for care homes, nurseries and specialist healthcare operators.

Key product information

Criteria	Description
Loan size	£500,000 to £15 million £5 million maximum loan for first time buyers
Repayment type	Capital and interest Experienced operators: 30 years First time operators: 20 years
Arrangement fee	1.5%
Debt service cover	130% adjusted EBITDA for children’s nurseries and experienced care operators 150% adjusted EBITDA for care first-time buyers Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Minimum size	Care homes: 20 bedrooms Specialist care: 4 bedrooms, if one or two properties, and flexible if there are three or more properties Children's nurseries: 40 places
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Specialist care operators	Children’s learning disability care Adult learning disability residential care Adult supported living Minimum of three years as a specialist care home owner-operator required

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Bridging finance

Short-term finance to bridge gaps in funding or operations. Uses include funding refurbishments, quick acquisitions, mortgage delays, EPC improvements, stabilisation periods, and much more.

Standard bridging rates

Criteria	Description
Loan size	£150,000 to £10 million
Maximum loan to value	75% for residential and semi-commercial properties, 70% for commercial
Term	Up to 24 months
Fees	Arrangement fee of 2%, deducted from advance
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Security	First legal charge over freehold or long leasehold title(s)
Insurance	Title insurance and search indemnity applied where possible
Valuations	AVMs and desktop valuations available up to 70%
Interest	Retained or serviced

Refurbishment loans

Criteria	Description
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Cost plan	Cosmetic: Higher of 15% of OMV, or £50,000 per property. Light: Higher of 50% of OMV, or £75,000 per property. Medium: Higher of 100% of OMV, or £100,000 per property.
Monitoring	Cosmetic and Light refurbishment to be monitored by our asset manager. Medium Refurbishment to be monitored by our QS.
Valuations	Full RICS valuation
Interest	Rolled. Rates are fixed and charged daily in arrears
Refurbishment type	Cosmetic: Works to improve speed of letting and compliance with regulations. Examples include redecoration, EPC improver works, compliance with utility regulations, boiler upgrades, modernisation. Light: As with Cosmetic, but higher cost plan. Medium: Loft conversions, reconfigurations, single story extensions, commercial to residential schemes.

To be eligible for a bridging loan, you or your business must own or be buying a commercial, semi-commercial, or residential investment property in England, Scotland, or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Bridging finance

Short-term finance to bridge gaps in funding or operations. Uses include funding refurbishments, quick acquisitions, mortgage delays, EPC improvements, stabilisation periods, and much more.

Standard bridging rates

Criteria	Description
Loan size	£150,000 to £10 million
Maximum loan to value	75% for residential and semi-commercial properties, 70% for commercial
Term	Up to 24 months
Fees	Arrangement fee of 2%, deducted from advance
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Security	First legal charge over freehold or long leasehold title(s)
Insurance	Title insurance and search indemnity applied where possible
Valuations	AVMs and desktop valuations available up to 70%
Interest	Retained or serviced

Refurbishment loans

Criteria	Description
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Cost plan	Cosmetic: Higher of 15% of OMV, or £50,000 per property. Light: Higher of 50% of OMV, or £75,000 per property. Medium: Higher of 100% of OMV, or £100,000 per property.
Monitoring	Cosmetic and Light refurbishment to be monitored by our asset manager. Medium Refurbishment to be monitored by our QS.
Valuations	Full RICS valuation
Interest	Rolled. Rates are fixed and charged daily in arrears
Refurbishment type	Cosmetic: Works to improve speed of letting and compliance with regulations. Examples include redecoration, EPC improver works, compliance with utility regulations, boiler upgrades, modernisation. Light: As with Cosmetic, but higher cost plan. Medium: Loft conversions, reconfigurations, single story extensions, commercial to residential schemes.

To be eligible for a bridging loan, you or your business must own or be buying a commercial, semi-commercial, or residential investment property in England, Scotland, or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Healthcare commercial mortgage

Healthcare is a specialist area, and one where experience matters. We provide specialist sector support for care homes, nurseries and specialist healthcare operators.

Key product information

Criteria	Description
Loan size	£500,000 to £15 million £5 million maximum loan for first time buyers
Repayment type	Capital and interest Experienced operators: 30 years First time operators: 20 years
Arrangement fee	1.5%
Debt service cover	130% adjusted EBITDA for children’s nurseries and experienced care operators 150% adjusted EBITDA for care first-time buyers Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Minimum size	Care homes: 20 bedrooms Specialist care: 4 bedrooms, if one or two properties, and flexible if there are three or more properties Children's nurseries: 40 places
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Specialist care operators	Children’s learning disability care Adult learning disability residential care Adult supported living Minimum of three years as a specialist care home owner-operator required

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.