At the start of the Covid lockdown we took steps to adjust our lending criteria to match the changing market conditions and manage the economic uncertainties that the lockdown brought. You may remember that for limited company buy to let transactions we moved our criteria to allow additional lending as the circumstances around the residential housing market in the UK became clearer. Since then we have been pleased to see an increase in deal flow and completions for limited company buy to let transactions.
We have now completed a review of our Commercial Investment lending criteria. As with our buy to let range we are introducing a number of changes. We have increased the maximum loan to value ratio that we can accept. Full details are overleaf, but for key sectors we are returning to a maximum 75% LTV for certain sectors. There has also been an increase in the maximum lend available to certain sectors.
We will continue to review our criteria as the affects of Covid-19 unfold. As ever your feedback is a vital part of how we shape our products and deliver them to your clients. Please let us know directly if you have any comments or suggestions.
- 75% Corporate BTL for existing customers to £20m
- New Corporate BTL customers 75% LTV to £5m 65% to £15million
- Maximum 75% LTV for Commercial Investment, subject to sector
- Minimum transaction size £500,000
Maximum loan amount per unit
- £5m for Commercial Investment (subject to sector)
- £2m for Owner Occupied
- £1m for Corporate BTL
Sector based approach to Commercial Investment LTV percentages
Max LTV 75% and max loan per property £5m
- Takeaways (including with limited indoor seating)
- Mixed use properties where the residential element contributes at least 75% of the rental income.
- Information and communication e.g. data centres
- Essential retail businesses * e.g. food retail, banks, chemists, DIY, pet stores, off-licences Warehousing & logistics.
- Industrial properties let to manufacturers, transport / storage and companies involved in public administration.
Max 65% LTV and max loan per property £3m
- “Non essential” retail businesses
- Real estate activities e.g. Estate agents, surveyors
- Wholesale retail e.g. cash and carry business, wine merchants.
- Education e.g. small nursery.
- Office based businesses in a broad range of sectors, please contact us for specific details
- Cafes / coffees shops.
- Maintenance of motor vehicles.