Commercial First Mortgages has launched a new commercial mortgage targetting the UK's SME business community.
Commercial First says this new product will enable it to compete directly with high street lenders throughout the UK.
The interest rate on the product starts at 2.5 per cent above LIBOR. It has a maximum loan size of £2m and loan to value of 75 per cent on advances of up to £500,000, 70 per cent on loans over £500,000 and a ceiling of 60 per cent on advances of £1m or more.
Early redemption charges are 6 per cent of the balance in year one, 5 per cent in year two, 4 per cent in year three, 2 per cent in year five
and 1 per cent thereafter.
Broker/IFA commissions are set at 1.5 per cent.