Are you looking to purchase a property for your business? Are you an experienced investor, or first time buyer looking to get into the property market? Have you been declined by the banks due to previous credit issues or your financials are not current? At DCANS Capital, we are the experts in providing direct commercial funding solutions for those deals that fall outside the traditional guidelines. We understand the complexities and requirements for a commercial loan application.
A common misconception amongst buyers is that commercial mortgages are only for the purchase of a commercial property, such as a business premise. The commercial part actually applies to you, the buyer. Loan purpose can also encompass: Asset Lend, Distressed assets, Major arrears, Mortgagee in possession and in Receivership. If your client is buying or remortgaging Commercial property we can help. Most property types are considered.
While residential mortgages often feel like a tick box exercise, commercial mortgages are often based on the financial viability of the project, alongside the buyers ability to manage the payments. So even if you have no experience in the property market, we’re still able to directly lend, with a property manager condition.
Product details and criteria
England and Wales
Up to 75%, based on lower of vacant possession value (VP), investment value or purchase price
Interest-Only (I/O) Option:
Normal rates apply if I/O period is 10 years or less. If I/O period exceeds 10 years, 0.5% rate increase applies.
Minimum Debt Service Coverage (DSCR):
DSCR will apply based on 5%, or the initial pay rate, whichever is higher. Investment: 125%
Owner occupier: Asset 110% (Market Rent), Borrower 125% (Net profit/EBITDA).
Individuals, Limited Companies, LLPs, Partnerships, Trusts and Pension Schemes.
Excluded Property Types:
The following properties are excluded – Heavy industrial, petrol stations, religious property, hostels, bedsits, equestrian centres, public houses, agricultural properties, catteries, kennels, golf clubs, hospitals, mobile home parks, garden centres, telecommunication masts and all other uses within Classes A4, C2, C2A and D2 of the T & CP Use classes Order 1987, or those properties listed as Sui-Generis.
Standard: Minimum 2 years relevant sector experience
Good credit history is required – at least 2 years with no adverse credit.
Arrangement Fee/Booking Fee:
• 1.50% Arrangement Fee
• 0.25% of the Arrangement Fee, known as the Booking Fee, is payable on acceptance of the Formal Offer and is non-refundable.
• The balance of the Arrangement Fee can be added to the loan (without increasing the interest rate banding) or can be deducted from the advance.
• Arrangement fee reduces by 0.25% for applicants with a clear 6 month DCANS Capital payment history.
Early Repayment Charge (ERC):
Any property used as security, which may include your home and/or business assets may be repossessed if you do not keep up repayments on your loan, or any other debts secured on it.