How does the lending process work?
Mon, 29 Oct 2007
If you make an enquiry for a commercial mortgage or bridging loan through the loan finder service we will obtain initial indicative offers of finance (or 'decisions in principle'); and then if you wish to proceed we will take you through the complete application process to obtain a formal offer of funds.
Once you have made an enquiry for a commercial mortgage or bridging loan through our loan finder service, we then use the details you have provided to contact the lenders you have selected together with any others that we believe may be suitable. We will seek offers of finance from each lender and will notify you of each offer that we receive (during which time we may need to speak to you to obtain any further information the lenders require).
The offers generated by lenders at this stage are usually only ‘indicative’ offers or ‘decisions in principle’ by the lender and are not binding offers of finance.
If you then wish to proceed further we will ask you to pay an administration fee of 0.1% (subject to a minimum fee of £100.00) plus VAT to cover our costs in processing your initial enquiry to this point, on receipt of which we will advise you of the lender's name and forward copies of the offers received to you.
The lender will then need to receive formal application forms and the submission of supporting documentation such as copy accounts, as well as instructing and receiving valuations of the property before completing their credit approval procedures and being able to offer a ‘fully sanctioned’ formal offer of finance.
We therefore work with you in completing application forms, dealing with valuers and submitting paperwork to the lenders to obtain this formal offer of finance, on acceptance of which we will charge you a success fee of 1% (one percent) of the gross facility provided by the lender, less the administration fee paid above.
To see which lender meets your requirements use the loan finder service on this site.
