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Commercial mortgages return to Pre Covid underwriting criteria

7th June 2021

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. But new lenders have entered the market and this announcement from Barclays is massively encouraging and will surely set the pace for others to follow.

So, 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 as an indication of whats 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. Max term of 25 years 
  • Max 80% LTV against goodwill. Max 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. Max term of 15 years
  • Max 80% LTV against goodwill practices. Max term of 15 years 

GP Surgeries

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

Specialist Care

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

Supported Living

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

Elderly/Residential Care

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

Opticians

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

Vets Practices

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

Manufacturing

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

Day Nurseries

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

Agriculture

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

Business Services (Architects, Estate Agents, Business Consultants)

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

Contracting

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

Retail 

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

Hotels/Guest Houses/B&B’s

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

Pubs & Restaurants

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

Takeaways 

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

Residential Investment

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

Commercial Investment

  • Max 55% LTV against VP value (3 properties minimum charged). Max 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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