Commercial Lending

Why choose National Counties

The Society’s approach to business lending is heavily influenced by its mutual status: striving to offer property investors and small businesses quality products, competitive pricing and excellent service.

What does this mean in practice?

  • An attractive Bank of England Bank Rate variable product and fixed rate loans linked to market rates.
  • A Flexiloan that allows staggered drawdown and overpaid capital payments to be redrawn.
  • Highly competitive interest rates linked to loan to value (LTV).
  • Fees and terms that are both competitive and fair.
  • Interest only and part interest only options.
  • Fast, friendly and professional service – we do not operate a faceless ‘loan factory’.
  • We will keep you informed of progress from application right through to completion.
  • We do not insist on our insurance or assurance covers, allowing you to shop around.
  • You can leave your main bank account where it is.

Who can obtain a National Counties mortgage?

The Society is able to be highly competitive by controlling overheads and being very selective about the type of business it transacts. Our approach to lending does rule out some loans, but we try to be as clear as possible about our requirements to ensure the applications we receive will progress to completion. Click on Check Eligibility to see if we can help you.

Click Lending Criteria to see our lending terms for Investment loans and Owner-occupier loans.

What about interest charging and repayments?

Interest is charged on a daily basis and compounded (debited to the loan account) on the last day of the month. Monthly payments are collected by direct debit, the first being due a month from completion. Interest due between the Completion Date and the end of the first month will be added to the initial payment.

National Counties offers a number of different mortgage products. Please click on Product Details to see our current product range. Both variable and fixed options are normally available. Loans are usually repayment (capital and interest), but interest only or partial interest only loans may be considered subject to LTV, property type and so on. All products are limited funds and can be withdrawn at any time.

Loans can be agreed for any term up to twenty-five years. Early repayment charges and fixed rate break fees may apply.

How are applications processed?

There are five stages between submitting an application and drawing down a loan, these are summarised below.

Agreement in Principle decision The Commercial Lending Department considers the application and confirms whether it is acceptable 'in-principle’. This means your application meets our basic lending criteria but that further detailed information will be required to consider the application in full. It is not a binding decision at this point.

 
Valuation If the application is acceptable in-principle, a business appraisal and/or valuation report will be required. This needs to be instructed in a specific manner and therefore you contact the Society for further details. The applicant will be expected to cover costs in this regard.

 
Sanction and offer Providing the appraisal and valuation report and our assessment of your proposal is satisfactory, the loan will be approved and a facility letter issued.

 
Legal process Once you have accepted the terms of our facility letter and all relevant fees have been paid we will instruct our solicitor to progress matters. The applicant can use the solicitors acting for the Society or choose to use their own solicitor.

 
Drawdown Once our solicitor confirms that all legal formalities have been satisfied, the transaction can complete.

 

National Counties recognises that speed of service is often a crucial issue. The Society endeavours to offer a service that is both quick and efficient. Furthermore, we use the services of valuers and solicitors who offer a similar service. We also believe that regular communication between all the various parties involved is vitally important. National Counties knows that purchasing a property or business, or even refinancing, can be stressful and strives to resolve any potential problems or difficulties at the earliest opportunity.

Is there anything else to consider?

The security property must be insured for the full reinstatement value. Whilst it is the borrower’s responsibility to ensure cover is sufficient, the Society will insist on the cover being for a minimum sum, this sum is provided by the valuer for guidance purposes. The borrower is free to make their own insurance arrangements and the Society will accept any major insurance providers. Confirmation that the insurance has been renewed must be provided annually. On occasions the Society may also make life insurance a loan condition. The Society will again accept cover provided by any major assurance provider.

National Counties believes in maintaining an ongoing relationship with its customers. Part of this may involve the Society requesting annual certified/audited accounts or tenancy information during the course of the loan, and even periodically visiting the business/property taken as security.

 


YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE