Don’t be shy, ask a question about property funding!
There is no such thing as a “daft question” If you have questions related to property funding, such as bridging loans, property development finance, buy to let mortgages, secured loans or commercial mortgages then we are always happy to hear them.
Please remember that these questions will be public and the answers are generic so no personal guidance can be given.
This is probably a good time to remind you that any information is offered in the spirit of sharing and should not be substituted for personalised advice from a suitably qualified professional. Please remember, no one is trying to sell you anything on this site. You may see the occasional advert, or link to a contributors web-site, but the information they provide is free.
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Here are some general questions that other people have asked:
Q: Why don’t some brokers charge broker fees on Commercial Mortgages?
A: Most commercial mortgage lenders pay a fee to the intermediary or broker. Because many smaller brokers do not employ a team of sales people to travel up and down the country they are able to pass that saving on to their clients.
Q: What fees are involved in setting up a Commercial Loan?
A: Typically with commercial loans the borrower is responsible for any valuation fees and associated survey reports. The borrower is also usually responsible for their own legal fees and those of the lender, unlike residential transactions two sets of solicitors are typically involved.
Q: Who or What is the NACFB
A: The National Association of Commercial Finance Brokers (NACFB) was formed to control and govern the activities of Commercial Finance Brokers. Members operate under a strict code of conduct and adhere to a robust complaints system. Using a member company ensures that they are committed to best professional practice.
Q: What does Self Cert mean?
A: Usually a “self cert” mortgage is used when the applicant is unable to prove their income – this does not mean that the figures are just made up though!
Q: How does 100% bridging finance work?
A: If purchasing a property at below its market value it can be possible to arrange finance to cover 100% of the purchase price. You must contact your broker before the purchase to use this facility. It is important that you understand how this works before bidding at a property auction.
Q: Does this include the 10% deposit at an auction?
A: No – this has to be paid on the day.
Q: How does 100% property development finance work?
A: The project must satisfy certain criteria to qualify for 100% finance. Typically the project needs to show a generous profit margin and the applicant needs to have a provable track record.