11th Jun 2009 - 00:00
Abstract
A new near-prime commercial mortgage product, which is designed for applicants who may not meet banks' current strict lending criteria, has been launched into the catering sector.
The development has come about as a result of current market pressures leaving a sector of the small business community, especially caterers, with little scope to pursue or develop a wide range of business activities without resorting to higher rate sub-prime borrowing. The new product, launched this week, looks to understand fully why a client needs the funding, the security available and the payment ability. It specifically targets the financial needs of the catering sector, considering mortgages from £30,000 to £600,000 with a maximum loan-to-value of 70%. Repayment can be taken as interest only or capital and interest, with the product open to direct applicants or through brokers and intermediaries. It covers commercial and semi-commercial applications from England, Wales and mainland Scotland. Roger Dewsbery, senior underwriter at Crystal Commercial Funding, said: "There is every hope now that this new product will help catering businesses who might not quite able to match up to the banks' current lending requirements. "We are in a unique position as not only are we the sole company providing funding to this area of the market, we are offering a rate that is still highly favourable to the near prime applicant and the product has enough flexibility to meet the best repayment options for the borrower. "When we take into account our commercial mortgage brokering division and in- house bridging finance products, we have a full spectrum of financial options for any client and can source the most suitable product." The company will also be targeting retail, nursing homes, building and construction and manufacturing sectors.