Some types of lending are a little more specialist and require expert advice.
For this reason, we decided to set up Cambridgeshire Commercial Money. A specialist division designed to ensure you always get expert simple, smart advice no matter what your finance needs are.
Second Charge Mortgages
A “normal” mortgage is also known as a “First Charge Mortgage”. Which means that when the property was sold or in some cases repossessed, that lender will get their money first.
The interest rates are typically higher than what can be found on a normal mortgage, but the advantage of working with Cambridgeshire Money is that we compare all types of finance to achieve your goals.
A bridging loan is intended for short term lending and can be used for a number of purposes, some common examples we see;
Buying a new home before you have been able to sell yours or if the transaction has fallen through and you do not want to restart your home searc
Buying a property at Auction
Lending against a property that a normal mortgage lender would not lend on. Such as a property that needs a renovation or does not have a working bathroom or kitchen
For some, Home Ownership is not enough. Some people have the dream of building their own home. Funding this dream can be difficult and unconventional. This is where a Self-Build Mortgage could help you achieve your own Grand Design.
Every project is different and bespoke to the individuals plans. Speaking to an adviser can ensure that you get the best lender and deal for you and your project to keep the build on track and the financing of the project seamless from start to finish.
Development Finance is a type of finance used to fund the purchase, construction, conversion or heavy refurbishment of properties. Most loans are considered short term and meant for use during the build and then repaid by the sale of the property/properties or refinanced with a different product later.
Lenders in this type of finance work differently to normal finance. The lender will consider the value of the property now, before the works being carried out, as well as the value on completion. This is to determine if the development finance is the best product to be
considered for your project.
You can expect to achieve 55% to 65% loan to value on the current value (pre-renovation) with a Maximum LTGDV in the region of 60-65% with a max Loan to Cost (LTC). This varies between lenders, but 65% is not an unrealistic expectation.
If you have a Development Finance enquiry, then get in touch and we
can talk through all of this with you and find a lender to suit your
A commercial mortgage is remarkably like a Residential Mortgage, but the key difference is what the loan will be secured against. As opposed to being on a residential address, like a house, it would be secured against a commercial property such as a Shop, Restaurant or in some cases Land.
This type of loan may be used by a company wanting to own their own premises or from investors that prefer to own properties rented to businesses as opposed to families.
Many businesses are turning to this option to take back control of their finances, allowing them the breathing space needed to move forward.
Asset finance is a type of lending that gives you access to business assets such as equipment, machinery and vehicles. It enables you to release cash from the value in assets you already own.
Some companies simply don’t have the working capital for a big purchase. That is where
Hire purchase is a simple way to purchase an asset and spread the cost over time. You pay in instalments, which means the item appears on your balance sheet and because you own the asset you will be responsible for the maintenance and insurance costs. You will also have
full ownership of the item after the term ends.
Many businesses find leasing a good arrangement because as well as spreading the cost over time, you can adapt to your company’s situation.
For example, say a delivery company leases a van, and at the end of the term business is booming. They could get a larger vehicle on a new lease or a package deal for multiple vehicles.
Finance leases and capital leases
A finance lease or capital lease falls somewhere between hire purchase and equipment leasing. It is a longer-term lease designed for most of the asset's life.
Operating leases and contract hire
Operating leases or contract hires are a more familiar form of equipment leasing. An operating lease is basically a rental agreement with a set term. Maintenance will normally be handled by the lease company (or & lessor. Like finance leases, an operating lease will not appear on your balance sheet (which might offer some tax benefits), but operating leases can be cheaper because you do not pay for the full value of the item.
Asset refinancing is the process of securing a loan against valuable items that your business owns such as buildings, vehicles, or equipment.
Some lenders specialise in one particular area of asset refinance, while others can finance almost anything that has a resale value.
so it can be taken as security for the loan.