Find answers to your questions about commercial mortgages and finance.

What information do I need to provide?

Once you have located a suitable business and agreed a purchase price, we will arrange a valuation of the business, which will take 2-3 weeks. We will also require completion of our Mortgage Application Form along with a CV for all relevant parties, and a business plan where appropriate.

What is a valuation?

A valuation is a full business appraisal, which is carried out by an independent valuer once you have agreed a purchase price for the business.

Will the valuation be acceptable to every lender?

We will look to instruct a valuer who is recognised by the majority of lenders nationwide. Once we have instructed the valuation, we will submit the same report to a number of lenders to obtain a choice of lending options.

How long does the process take?

From agreeing a purchase price, we would hope to provide an offer of finance within 3-4 weeks, dependent on the time taken to complete the valuation. Then, provided you are happy to accept this offer, solicitors will be instructed and we would hope to complete within a further 4 weeks (more for healthcare purchases).

Should I select a fixed or variable rate loan?

There is no definite answer to this question. When making this decision, you should bear in mind the following: redemption costs, fixed rate term (3, 5, 7 or 10 years), market trends and the cash flow of the business, in order to assess the advantages and disadvantages of each option.

How much can I borrow?

Lending criteria will be judged according to lender, your experience, and how you and your business plan are presented to a lender.

Will I need to give security?

You may be required to give a first legal charge over the premises being purchased, refinanced or developed. 100% funding may be available for both freehold and leasehold purchases, if additional security is offered. We would remind you to think seriously before securing your mortgage debt against your home.

What loan term will apply?

For freehold funding, loan terms would usually vary between 15 and 25 years, and for leasehold funding, the loan term would depend on the remaining number of years on the lease.

How much will it cost me?

Our fee is payable upon acceptance of an offer of finance from ourselves. Please discuss our terms and conditions with your local Christie Finance consultant, who will guide you through all the associated costs.

What rate of interest will I be charged?

Each application will be treated and assessed on its own merits. A standard rate of interest does not exist, although an average interest rate for any given freehold purchase would probably be in the region of Bank of England Base Rate plus 3%. This premium over Base Rate could fluctuate depending on the lender’s perception of the strengths of the proposal. Leasehold lending is usually arranged at a slightly higher premium over Base Rate, because of the lender’s perceived higher risk.

What if I’ve been refused elsewhere?

We specialise in providing commercial and business mortgages for those who have found it difficult to obtain a commercial mortgage from the traditional high street lenders.

How should I protect my business?

As your business purchase is likely to be your largest single investment, it is essential to obtain adequate insurance cover to protect your business in the event of a loss occurring. Our sister company, Christie Insurance, would be happy to assist you with a quotation for your business insurance. For further information go to www.christieinsurance.com.

What is your complaint procedure?

If you wish to register a complaint please contact the Managing Director at Christie Finance, 4th Floor, Whitefriars House, 6 Carmelite Street, London EC4Y 0BS or by telephone on 0344 412 4944. Our internal complaints procedure is available on request. You may be entitled to refer a complaint against us to the Financial Ombudsman Service if you are not satisfied with our response. The contact details are as follows: The Financial Ombudsman Service, Exchange Tower, London E14 9SR - http://www.financial ombudsman.org.uk/; E-mail: complaint.info@financial-ombudsman.org.uk, tel: 0800 0234567.