blog mortgage118

Tag: commercial mortgage

  • Roma Launches New Commercial Mortgages for Investors

    Roma Launches New Commercial Mortgages for Investors

    Roma has announced the launch of its new commercial mortgage products, now available to property investors and businesses across the UK. This move follows a significant partnership with J.P. Morgan, marking Roma’s continued expansion into long-term finance solutions.

    TL;DR: Roma’s new commercial mortgages offer funding up to £2m with rates starting at 7.1%; this is aimed at property investors and businesses in England, Scotland, and Wales.

    What are the key features of Roma’s commercial mortgages?

    The newly launched commercial mortgages provide funding of up to £2 million, catering specifically to property investors, trading businesses, and OpCo-PropCo structures. Borrowers can access loans with a loan-to-value (LTV) ratio of up to 70%, with fixed-rate options and longer-term funding solutions available. This flexibility is designed to meet the diverse needs of both investment and owner-occupied commercial property requirements.

    Who can benefit from these commercial mortgages?

    Property investors and business owners looking for funding solutions in England, Scotland, and Wales can benefit significantly from Roma’s new offerings. The competitive starting rate of 7.1% makes these mortgages an attractive option for those seeking to invest in commercial real estate or manage operational properties effectively.

    What this means for property investors and brokers

    This launch enhances the range of financing options available to property investors and brokers, allowing for a more tailored approach to securing commercial mortgages. With the ability to access these products alongside existing bridging and development finance solutions, brokers can provide a comprehensive service to their clients, facilitating smoother transactions in the commercial property market.

    Frequently asked questions

    What types of properties can be financed with Roma’s commercial mortgages?

    Roma’s commercial mortgages can finance various property types, including investment properties and owner-occupied commercial spaces, underlining their versatility for different business needs.

    How does the loan-to-value (LTV) ratio work?

    The loan-to-value (LTV) ratio indicates the amount of the loan compared to the property’s value; with Roma’s offering, borrowers can secure up to 70% of the property’s value as a loan.

  • Calls for Planning Reform to Boost Bridging Finance

    Calls for Planning Reform to Boost Bridging Finance

    The commercial mortgage and bridging finance sector is urging the next Prime Minister to implement significant planning reforms and support for landlords. This comes amid concerns that current planning delays and tax policies are hindering investment in commercial and mixed-use properties, which are vital for addressing the UK’s housing supply crisis.

    TL;DR: The next PM is urged to reform planning and support landlords to enhance housing supply; current policies are seen as barriers to investment.

    What Planning Reforms Are Being Proposed?

    Karen Rodrigues, sales director at TAB, has highlighted the pressing need for a revamped planning system. She advocates for statutory deadlines and increased resources for local authorities. A key proposal is to allow for the easier conversion of redundant commercial spaces into mixed-use developments, which could expedite the approval process for change-of-use applications. This change is important as it would help alleviate the slow pace of the current planning system, which Rodrigues describes as a significant obstacle for businesses and investors.

    How Will This Impact Landlords and Investors?

    Landlords are facing increasing challenges due to policies that treat them primarily as tax revenue sources. Rodrigues argues that the next government should prioritize support for the private rented sector (PRS), which is essential for meeting housing demand, especially as social housing supply remains inadequate. Proposed reforms include reinstating mortgage interest tax relief for individual landlords, scrapping the stamp duty surcharge, and bringing back the Wear and Tear Allowance. These measures aim to reduce financial burdens on landlords, enabling them to invest more in their properties and the communities they serve.

    What Changes Are Needed for Business Rates?

    Another area of concern is the business rates system, which Rodrigues claims is detrimental to high streets and mixed-use investments. She suggests that lowering costs for independent retailers and hospitality businesses would support the tenants of semi-commercial properties. By reforming business rates, the government could help rejuvenate local economies and encourage investment in high street properties, which have suffered in recent years.

    What This Means for Bridging Finance

    For those involved in bridging finance, the proposed reforms could lead to a more dynamic property market. By reducing transactional friction, such as high stamp duty rates, the government could encourage more property transactions and investments. This would not only benefit property investors and landlords but also stimulate economic growth through increased activity in the commercial and mixed-use property sectors. As bridging finance becomes a more critical tool for funding regeneration projects, these reforms could unlock new opportunities for investors and borrowers alike.

    Frequently asked questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. It is often used in situations where quick access to funds is required.

    How can planning reforms affect property investments?

    Planning reforms can streamline the approval process for property developments, making it easier for investors to convert and develop properties. This can lead to increased investment opportunities and a more vibrant property market.

  • YBS Commercial Mortgages Expands Broker Team for Growth

    YBS Commercial Mortgages Expands Broker Team for Growth

    YBS Commercial Mortgages has announced the strengthening of its broker team with the addition of Michelle Lowe, who brings over 20 years of experience in financial services, including more than a decade in commercial lending. This strategic move aims to enhance support for brokers and improve turnaround times in the commercial mortgage sector, reflecting the lender’s commitment to meeting the evolving needs of its partners.

    TL;DR: YBS Commercial Mortgages has hired Michelle Lowe to bolster its broker team; this change aims to enhance support and efficiency for brokers handling commercial mortgage cases.

    Who is Michelle Lowe?

    Based in Manchester but operating on a national scale, Michelle Lowe joins YBS Commercial Mortgages with extensive expertise in the financial services sector. Her background in commercial lending positions her well to contribute effectively to the lender’s objectives. Lowe expressed her enthusiasm for joining the team, highlighting her commitment to supporting the company’s growth ambitions.

    What does this mean for brokers?

    The addition of Lowe to the business development team is a significant step for YBS Commercial Mortgages as it aims to provide enhanced support for its broker partners. The lender is focused on delivering fast turnaround times and dedicated assistance, which is important for brokers managing increasingly complex commercial, buy-to-let, and bridging cases. This investment in personnel underscores YBS’s strategy to maintain high levels of service and responsiveness in a competitive market.

    How does this impact the commercial mortgage market?

    The recruitment of experienced professionals like Lowe signifies a broader trend in the commercial mortgage market, where lenders are investing in their teams to better serve brokers. As demand for commercial mortgages continues to rise, particularly in light of complex financial needs, lenders must adapt to ensure they can meet these challenges effectively. This move could lead to more streamlined processes and better outcomes for borrowers seeking commercial finance solutions.

    What this means for landlords and investors

    For landlords and investors, the strengthening of YBS Commercial Mortgages’ broker team could result in improved access to commercial mortgage products and more efficient processing of applications. As brokers receive better support, they can offer more tailored solutions to their clients, ultimately benefiting those looking to invest in commercial properties or expand their portfolios.

    Frequently asked questions

    What types of loans does YBS Commercial Mortgages offer?

    YBS Commercial Mortgages provides a range of products, including commercial mortgages, buy-to-let loans, and bridging finance options.

    How can brokers benefit from YBS’s new team member?

    Brokers can expect enhanced support and faster turnaround times for their applications, which can improve their service delivery to clients seeking commercial mortgage solutions.

  • Molo Introduces Semi-Commercial Mortgage Options

    Molo Introduces Semi-Commercial Mortgage Options

    Molo has launched a new semi-commercial mortgage product aimed at providing brokers with a streamlined option for smaller semi-commercial deals. This initiative is significant as it addresses a gap in the market where many smaller properties often fall outside traditional lending criteria.

    TL;DR: Molo’s new semi-commercial mortgage offers loans from £45,000 to £3m, with LTVs up to 75% for non-fire-risk properties, helping brokers place smaller deals more easily.

    What are the key features of Molo’s semi-commercial mortgage?

    The semi-commercial mortgage from Molo allows loan amounts ranging from £45,000 to £3 million. It is designed specifically for properties where the commercial aspect does not exceed 40% of the total floor area. The mortgage is available with a five-year fixed rate, starting at 6.55% for loans at 75% loan-to-value (LTV) and 6.85% for those at 65% LTV for fire-risk properties.

    How does this impact brokers and borrowers?

    This product is particularly beneficial for brokers who have clients needing financing for smaller semi-commercial properties that might not meet the criteria of larger lenders. The ability to secure up to 75% LTV on non-fire-risk properties simplifies the process for borrowers, making it easier for them to access funds and invest in mixed-use properties.

    What this means for landlords and investors

    Landlords and investors looking to expand their portfolios with semi-commercial properties will find Molo’s offering advantageous. By providing a clearer pathway for financing, Molo enables potential investors to explore opportunities that were previously challenging to fund. This could lead to an increase in investment activity in the semi-commercial sector.

    Frequently asked questions

    What types of properties qualify for Molo’s semi-commercial mortgage?

    Properties must have a commercial element that does not exceed 40% of the total floor area to qualify for Molo’s semi-commercial mortgage.

    What are the current rates for Molo’s semi-commercial mortgage?

    The rates start from 6.55% for loans at 75% LTV for non-fire-risk properties and 6.85% for those at 65% LTV for fire-risk properties.

  • Molo Unveils New Semi-Commercial Mortgage Range

    Molo Unveils New Semi-Commercial Mortgage Range

    Molo has launched a new semi-commercial mortgage range, catering specifically to UK domestic borrowers. This offering is significant as it allows for greater flexibility in financing properties that combine residential and commercial elements, appealing to landlords and investors looking to diversify their portfolios.

    TL;DR: Molo’s new semi-commercial mortgage range offers loans from £45,000 to £3 million, with LTVs up to 75% for non-fire-risk properties, providing landlords with more financing options.

    What are the key features of Molo’s semi-commercial mortgage?

    The new mortgage range from Molo includes loan sizes between £45,000 and £3 million, with a maximum loan-to-value (LTV) ratio of 75% for non-fire-risk properties. For properties deemed to be fire-risk, Molo may consider loans up to 65% LTV on a case-by-case basis. Importantly, the commercial portion of the property must not exceed 40% of the total floor area, ensuring a balance between residential and commercial use.

    How does this impact landlords and investors?

    This development is particularly beneficial for landlords and property investors who wish to explore semi-commercial properties. With the ability to secure five-year fixed-rate products starting at 6.55% for 75% LTV and 6.85% for 65% LTV, borrowers can manage their costs effectively. The launch follows Molo’s strategic partnership with LMS, which aims to streamline the post-offer process, potentially enhancing the overall borrowing experience.

    What should borrowers watch for next?

    Borrowers interested in Molo’s semi-commercial mortgages should keep an eye on the evolving market of commercial mortgage offerings. With the current rates and terms, it’s essential to assess how these products fit into broader investment strategies, especially as market conditions change. Additionally, staying informed about Molo’s partnership with LMS could provide insights into improved service delivery in the mortgage process.

    Frequently asked questions

    What types of properties qualify for Molo’s semi-commercial mortgage?

    Properties that combine residential and commercial elements qualify, provided the commercial part does not exceed 40% of the total floor area.

    What are the interest rates for Molo’s semi-commercial mortgages?

    Interest rates start from 6.55% for loans at 75% LTV and 6.85% for loans at 65% LTV.

  • Molo Introduces Semi-Commercial Mortgage Proposition

    Molo Introduces Semi-Commercial Mortgage Proposition

    Molo has unveiled a new semi-commercial mortgage offering aimed at UK domestic borrowers, expanding their product range in the commercial mortgage sector. This development is significant as it allows investors and landlords to secure financing for properties that blend residential and commercial uses, catering to a growing market demand.

    TL;DR: Molo’s new semi-commercial mortgage allows loans from £45,000 to £3 million, with LTVs up to 75% for non-fire risk properties. This is beneficial for landlords seeking to finance mixed-use properties.

    What are the key features of Molo’s semi-commercial mortgage?

    The semi-commercial mortgage from Molo offers loan amounts ranging from £45,000 to £3 million. Borrowers can access up to 75% loan-to-value (LTV) for properties that do not pose fire risks, while those with fire risks can secure up to 65% LTV on a case-by-case basis. Importantly, the commercial component of the property must not exceed 40% of the total floor area.

    How does this mortgage benefit landlords and investors?

    This new proposition is particularly advantageous for landlords and property investors looking to finance mixed-use properties. With the ability to secure significant funding, landlords can invest in or enhance properties that combine residential and commercial spaces, potentially increasing rental income and property value.

    What this means for the commercial mortgage market

    The introduction of Molo’s semi-commercial mortgage is a notable shift in the commercial mortgage market, reflecting the increasing interest in mixed-use properties. This product could stimulate investment in the sector, offering more options for borrowers and potentially leading to greater competition among lenders.

    Frequently asked questions

    What types of properties qualify for Molo’s semi-commercial mortgage?

    Properties that qualify must have a commercial element that does not exceed 40% of the total floor area, with specific LTV limits depending on fire risk status.

    What are the interest rates for this mortgage product?

    Interest rates for Molo’s semi-commercial mortgage start at 6.55% for 75% LTV and 6.85% for 65% LTV, available only on five-year fixed-rate products.