Interest-Only mortgage to buy a commercial property
- Thread starter Kipper
- Start date
Hello,
Why do you want an interest only loan ?
I would be surprised if you can get one of the retail banks to provide interest only on the entire balance - you might get them to do a part interest only, part amortising loan, if you have a good reason for it though.
Thereafter, the alternative lenders are going to be more expensive (by at least a couple of percent and significantly more, in some instances). Also, I believe that most of them are only providing funds for periods up to 5-years, which may not suit your purpose.
Why do you want an interest only loan ?
I would be surprised if you can get one of the retail banks to provide interest only on the entire balance - you might get them to do a part interest only, part amortising loan, if you have a good reason for it though.
Thereafter, the alternative lenders are going to be more expensive (by at least a couple of percent and significantly more, in some instances). Also, I believe that most of them are only providing funds for periods up to 5-years, which may not suit your purpose.
Hello,
Thanks for the reply.
No guarantees on the provision of interest only - but you might try the likes of Finance Ireland or Origin Capital. Both are selective on the transactions they fund, considering things like location and size of the deal, but they may be of help given the low LTV.
Then there are others like Lotus or BBF Capital Partners, but they will be even more expensive (c.15% pa) and tend to specialise in very short term deals (sub 2 years). I suspect Beacon Capital may also fall into this group, but I am open to correction.
Perhaps you might let us know how you get on, as we can all learn from each other with regards to whats going on in the market etc.
Thanks for the reply.
No guarantees on the provision of interest only - but you might try the likes of Finance Ireland or Origin Capital. Both are selective on the transactions they fund, considering things like location and size of the deal, but they may be of help given the low LTV.
Then there are others like Lotus or BBF Capital Partners, but they will be even more expensive (c.15% pa) and tend to specialise in very short term deals (sub 2 years). I suspect Beacon Capital may also fall into this group, but I am open to correction.
Perhaps you might let us know how you get on, as we can all learn from each other with regards to whats going on in the market etc.
Hello Kipper,
Just incase you did not see the publicity the day after I posted above... Pepper have now commenced lending for commercial property apparently. I've absolutely no idea what the will or will not provide funding for, or on what terms, but if you are making the phonecalls one more won't hurt
Just incase you did not see the publicity the day after I posted above... Pepper have now commenced lending for commercial property apparently. I've absolutely no idea what the will or will not provide funding for, or on what terms, but if you are making the phonecalls one more won't hurt