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Commercial mortgages return to Pre Covid underwriting criteria

28th June 2022

By Steve Walker

Many brokers & borrowers think the commercial mortgage market’s closed

That’s not the case

There’s plenty of opportunity if you know where to look.


Here’s a brief update on how lenders are currently thinking

COVID has made commercial mortgages far harder, with some lenders virtually pulling out or being very picky about which sector they will support. However, new lenders have entered the market and this announcement from Barclays is massively encouraging, and will surely set the pace for others to follow.

Could you promote commercial lending more with the fantastic news that leading lenders have returned to pre-Covid underwriting criteria?

Do you have clients in any of the sectors below?
Could your turn your enquiry’s to commission income with no further involvement from you?


Page which others have found useful…

NOTE: Below is an indication of what’s available from just one lender. 
Others offer different LTV’s and terms with very different risk appetites. We have a massive choice of high street and specialist lenders.

Dental

  • Max 100% LTV against the freehold. Longest term of 25 years .
  • Max 80% LTV against goodwill. Longest term of 15 years. Capped at £1m (£1.25m for London & SE) or £1.5m for three sites or more.

Pharmacies

  • Max 90% LTV against freehold practices. Longest term of 15 years.
  • Max 80% LTV against goodwill practices. Longest term of 15 years.

GP Surgeries

  • Max 100% LTV against freehold practices. Longest term of 20 years.

Specialist Care

  • Max 80% LTV against Alternative Use valuation. Longest term of 15 years.

Supported Living

  • Max 55% LTV against Alternative Use valuation. Longest term of 15 years.

Elderly/Residential Care

  • Max 55% LTV against going concern valuation. Longest term of 15 years. Minimum 2 site operators charged.

Opticians

  • Max 60% LTV against trade related valuation. Longest term of 15 years.

Vets Practices

  • Max 100% LTV against VP value OR 90% LTV against operating concern value. Longest term of 25 years. 

Manufacturing

  • Max 80% LTV against VP value. Longest term of 20 years.

Day Nurseries

  • Max 70% LTV against going concern value. Longest term of 25 years but dependent on requested LTV (25 years for <65% LTV).

Agriculture

  • Max 80% LTV dependent on sub sector. Longest term up to 25 years.

Business Services (Architects, Estate Agents, Business Consultants)

  • Max 70% LTV against VP value. Longest term of 15 years.

Contracting

  • Max 60% LTV against VP value. Longest term of 15 years.

Retail 

  • Max 65% LTV dependent on sub sector. Longest 15 years.

Hotels/Guest Houses/B&B’s

  • Max 55% LTV against going concern value. Longest term of 15 years.

Pubs & Restaurants

  • Max 55% LTV against going concern value. Longest term of 15 years.

Takeaways 

  • Max 70% LTV against VP value. Longest term of 15 years.

Residential Investment

  • Max 65% LTV against VP value (4 properties minimum charged). Longest term of 25 years.
  • Max 70% LTV against VP value (Ltd Co BTL 1-3 assets). Longest term of 25 years.

Commercial Investment

  • Max 55% LTV against VP value (3 properties minimum charged). Longest term of 15 years.

NOTE: there are other lenders offering better  / worse terms – Pick up the phone and talk to us.


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