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| Income/Serviceability |
The borrower's income should be sufficient to cover the projected capital and interest payments. |
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Sufficient income should remain to cover other financial commitments. |
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Income is calculated based on forecast or actual net profit plus acceptable add-backs (interest on refinanced debt, rent
payments, owners' / directors' salaries, some depreciation or non-recurring costs). |
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Investment cases are tested against net rental income. |
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Additional support from employed income, other business profit or investment income may be considered. |
| Financial Evidence |
Profit and Loss accounts, income statements, management accounts, financial
forecasts, accountant's letter. |
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For investment cases; copy of leases, licences or AST agreements,
and confirmation of rental payments by rent or bank statements. |
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Statement of assets and liabilities, and income and expenditure,
together with a summary of the background and experience of borrower. |
| Credit Profile and Mortgage & Bank Conduct |
Bank conduct to be confirmed in all cases by 6 months most recent
and consecutive bank statements. |
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Mortgage conduct to be confirmed by 12 months payment history. |
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Adverse credit and past arrears considered by exception. |
| Security Requirements |
Where borrower is a limited company a debenture and directors' guarantees are required. |
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| LTV |
Loan to Value is based on open market valuation. LTV thresholds may be reduced for certain property types
where marketability or resale is limited. |
| Acceptable Property Types |
| Retail |
75% |
| Offices & Industrial |
75% |
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Licensed & Hospitality |
70% |
| Rural & Agricultural |
70% |
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| Unacceptable Property |
Healthcare except Day Nurseries.
Domestic residential property although buy to let and residential investments are acceptable. |
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Development property proposals are not acceptable. Property must be in
acceptable condition for intended trade and purpose on draw down. Minor upgrade,
fit-out and refurbishments are acceptable. |
| Property Tenure |
Freehold or Long leasehold property acceptable where a period of 55 years lease is remaining at the end of the
proposed loan term. |
| Other LTV features |
LTV is calculated against the lower of purchase price or valuation.
Tenant purchases / family transfers at discount may be considered using 90% of
open market vacant possession valuation. |
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Obtain Indicative Terms |
Complete a DiP or application
form and fax it to 0845 465 6501 or
email newbusiness@business-lending.co.uk supported
by as much detail as possible including financial evidence and property particulars.
Indicative terms detailing requirements for provisional offer will normally be provided
to you within 24 hours. |
| Provisional Offer |
Where indicative terms are acceptable to the client and sufficient detail has
been provided to complete the initial credit assessment, a provisional offer
will be forwarded to you. A request for an appraisal meeting and the fee will be
shown in the provisional offer. |
| Appraisal Meeting and Valuation |
On acceptance of the provisional offer and payment of the appraisal and
commitment fee our underwriting team will agree a client meeting and property
appraisal with you. We will advise you of our valuation panel and you may agree
fees, payment terms and availability prior to formal instruction. The valuation
instruction letter will be sent by Business Lending Ltd. |
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Credit Searches |
Credit searches will be completed by Business Lending prior to full offer. To comply
with Data Protection requirements we must have a signed application form and information
declaration before we obtain the searches. |
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Full Offer and Acceptance |
On receipt of an acceptable valuation, proof of identification and
any other outstanding requirements. The full offer will be sent to you to
arrange acceptance. |
| Legal Process |
On acceptance of the full offer and receipt of the Legal Fees
undertaking we will instruct our solicitors to complete the legal review and
security documentation, the costs of which generally amount to 0.25% of the loan
amount for standard cases, subject to VAT and disbursements. Payable by the
borrower. |
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In cases where there are additional/multiple leases or titles there
may be additional fees payable. |
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In addition the borrower will need to be represented by their own solicitor and
they will be responsible for the legal fees in this respect. |