No ERC, but interest is charged for the loan term selected, i.e. 6 months, 12 months or 18 months.
Two servicing options exist for this loan:
- Zero: No monthly payments are required. Fixed rate of interest set at outset and rolled up to the maturity and redemption of the Development Loan
- Full: Company services loan interest monthly until Development Loan maturity
All of our mortgages are structured around the amount of money you want to borrow compared with the value of property you are buying. This is referred to as the loan to value (LTV) ratio. It’s the difference between the deposit you have and the property purchase price in percentage terms.
If your security residential property is worth £100,000 and you borrow £75,000 the LTV will be 75%. If it still has a mortgage against it, you will be taking out a second-charge mortgage with BlueZest on that property.
- Maximum 4 Directors with all registered directors being party to the mortgage agreement
- All Directors must reside as a tax resident in the UK, and have done so for at least 3 years with indefinite leave to remain
- All Directors must have a traceable credit bureau record of 3 years or more
- All Directors must have held an active UK bank current account for at least 3 years
- No Director can have had any personal mortgage arrears in the last 12 months
- No Director can have any unspent criminal convictions other than for minor traffic offences
- The company must have a good credit history and demonstrate profitability that will allow the company to repay the interest on the loan
- The company must have been continuously trading for at least 2 years (and be able to provide accounts/tax returns for this period)
- PAYE and non-PAYE contractors are acceptable
Director’s Personal Guarantees (DPG) required from all company directors.