Commercial Mortgage Refinance -
Huddersfield, Wakefield, Leeds, West Yorkshire

At Almondbury we realise that recognising the underlying needs for Refinancing a Commercial Mortgage is of paramount importance. The quality of the advice offered is directly related to these factors which have to be fully examined at outset. We see our role in working with our clients as being an ancillary service to their business, as opposed to an institutional type advisor. The importance of this distinction is that we are not simply trying to sell a product or achieve some self-driven target. Our duty to our client is always to put their business first, and this is our prime concern.

The actual reasons for the need to consider a Commercial Mortgage Refinance can be many and varied. For instance a business may be faced with what it perceives as an unmissable opportunity. On the other hand the business may be suffering from what it sees as a short term pressure on reserves due to overtrading or bad debts. These circumstances can arise ‘out of the blue’ and will invariably lead to the management facing a period of fairly rapid and pressurised decision taking. At these times it is crucial that the business receives expert and unbiased advice.

Firstly the idea that a Mortgage Refinance is the right way to go may be flawed. For instance, if the business is under pressure from overtrading, the possibility of factoring the debt should be considered and fully researched. Again, if the business is being hampered by bad debt, some form of credit insurance may be appropriate. This itself may be provided as part of a Factoring arrangement. The businesses ability to repay the debt needs to be examined also in that this may also expose the idea of refinancing as being flawed. If the business cannot prove ability to repay it will not necessarily mean that refinancing cannot be achieved. In circumstances where the business cannot prove ability to repay it will, however, limit the number of potential lenders.

Self-Certification of income has become a commonly used method where lenders are willing to lend against the security offered in the property alone and choose to ignore the normal route of asking for accounts as proof of income. In these cases the lender will usually charge a slightly higher interest rate than that available where the lender has access to full accounts proving income. In addition to this the lender will usually look at the past payment record of the applicant in terms of their servicing of existing finance. The lender will be interested to take a reference from the existing lender to find how well the finance has been serviced. Usually this reference will be limited to an enquiry concerning the past 12 months of payments. If the lender finds that an arrears situation has occurred then it is very likely that they will ask for a slightly higher interest rate. The amount of the increase to the interest rate will usually be in direct proportion to the number of missed payments and the overall arrears situation.