Commercial Mortgages for property investment
The term Commercial Mortgage generally refers to any senior term debt secured against commercial property, normally as a first charge.
The type of commercial property used as security can fall into any class use – please see commercial class use list further down this page. Commercial Mortgages can be provided for both investment and owner occupied trading businesses.
Ownership is typically a Ltd or LLP company but can also be in a personal name or other entity. Belgravia PF arranges funding in less common ownership forms ie. to Expats, Non UK nationals, Pension Funds ie. a SSAS, and Overseas companies – commonly those registered in Guernsey, Jersey, Isle of Man, Luxemburg and often BVI, Caymans, Hong Kong.
Cost of funds
SONIA (Sterling Overnight Index Average) has replaced LIBOR and is an important interest rate benchmark. The Bank’s, Funds and lenders that Belgravia PF work with normally price loans over SONIA. SONIA represents the cost of funds to the lender, the lender then charges a margin over this, typically we see margins at 1.8-2.5% over SONIA for prime commercial loans.
The Bank of England are the administrator for SONIA, they take responsibility for its governance and publication every London business day.
SONIA reference rates are based on actual transactions and reflect the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional investors.
SWAP RATES
Financial institutions and funds use SWAP rates to provide loans that are fixed.
For further information on any of the products that we offer, or to discuss your funding requirements please contact us on; 020 7993 8445 or finance@belgraviapf.co.uk
Learn more about bridging loans in Scotland and Ireland.
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8am-8pm Mon-Fri, 10am-4pm Sat & Sun | Call 020 7993 8445 or emails us at finance@belgraviapf.co.uk