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Commercial First unveils range of near prime products

Commercial First has unveiled a range of near prime commercial mortgage products and major improvements to its sub-prime range.

Under the sub brand of Choice, the company has for the first time focused upon delivering a product for the conforming business customer.

Stephen Johnson, sales and marketing director at Commercial First says: “This move has been the result of intermediary feedback we have received. For some time we have been asked to bring the Commercial First approach to the mainstream business mortgage market. This move dramatically extends the scope of our market appeal.”

A sub-brand has been developed to launch the product, and under the Choice banner it will be exclusively distributed via the intermediary channel.

Johnson adds: “This is a significant move, and we wanted to invest heavily in developing an incremental range of products with its own unique identity. We believe it delivers wider choice to the intermediary and business customer, but has retained the values that have made Commercial First successful simplicity and premium service.”

The product is priced in the range of 2% to 2.5% above LIBOR all the way up to an LTV of 75% for advances of 1.5m and below. 85% LTV has also been made available within the criteria.

To qualify a customer has to provide one year professionally prepared accounts providing 1.3 servicing cover and three months bank statements. The client is not required for an interview.

Philip George, managing director of Commercial First, says: “We are offering greater flexibility on criteria than a customer would receive from a high street lender, while offering them a faster service with less disruption to their business operation. This has been achieved with pricing comparable to that of mainstream commercial lending”.

Commercial First has also taken the opportunity to improve its existing sub-prime range of products.

Johnson adds: “We are absolutely committed to the non-conforming sector and have made exciting improvements. We believe the combination of offering 85% LTV, cheaper pricing, shorter ERCs and longer interest only periods is a sign of our intent.

“It is also our chance to repay the faith shown in us by our intermediary partners it is their efforts that have turned a good idea into a thriving business.”


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