100% Commercial mortgages

wwp8

Hi, Can anyone recommend any brokers etc. who can offer 100% mortgage on a commercial vacant premises.
I understand they don't exist no more, but am looking for those that can do so with a 2nd charge on my house.

Dave_Ham

I do not specialise in commercial, although have a rough idea of the market.

If you are willing to secure against your home, would it not be worthwhile taking a secured loan or remortgage at a higher value and then lend this to your business to buy the premises.

There is some clever accountants stuff you can then do as a director loan, but ultimately you/the company will benefit from much, much lower fees and a fair bit lower rate of interest...?

Just an idea.

holly_hobby

In my experience, theres never been 100% commercial lending - 75% at best

Comm lending with primary residence as security, would require a 2nd charge, so the avail free equity would need to be sufficient for security of the commercial finance. Futhermore your existing mge lender would have to give their permisson for 2nd charge registration.

The alternative option would be to withdraw equity from your primary residence fo fund the reqd deposit.

Of if there is no mortgagee, then remortgage your property to release equity HOWEVER, business start up or capital injection into a failing business are no go's.

Go and see a broker, see if you would get comm finance for the property (use of property, prev experience of business etc.. etc.. )and at what max LTV, then look at sourcing a deposit etc.

Hope this helps

Holly

Conrad

A commercial lender can take a charge over your home if there is plenty of equity and your first charge existing lender allows.

I do commercial finance, it isn't easy. Even the less fussy lenders want a heck of a lot of info in the current climate.