eastgate

Eastgate Commercial Finance Shortlisted for NACFB Awards 2025

Wed, 30 Jul 2025 08:42:05 GMT

We're proud to share that Eastgate has been shortlisted for Best Development Finance Broker at this year’s NACFB Commercial Brokers Awards!

This recognition means a great deal to us—not just as a reflection of the deals we’ve delivered, but of the trust our clients place in us to solve complex funding challenges with care, creativity, and integrity.

A huge thank you to our clients, lender partners, and peers for your continued support. And congratulations to all the other finalists—it's an honour to be in such great company.

Onwards to the awards night! ��

Eastgate Commercial Finance Shortlisted for NACFB Awards 2024

Mon, 29 Jul 2024 11:20:10 GMT

Eastgate Commercial Finance Shortlisted for NACFB Awards 2024

We are thrilled to share some exciting news with our clients, partners, and friends: Eastgate Commercial Finance has been shortlisted for the NACFB Commercial Broker Awards 2024!

The NACFB (National Association of Commercial Finance Brokers) Awards are highly regarded in our industry, recognising excellence, innovation, and commitment to delivering the highest standards. This year, nearly 300 applications were received across 17 categories, making the competition fierce. Our team at Eastgate Commercial Finance is humbled by this recognition. We believe that our success lies in our unwavering dedication to our clients’ financial needs, our collaborative approach, and our commitment to finding tailored solutions.

While we eagerly await the final results, we want to express our gratitude to everyone who has supported us on this journey. Whether you’re a client, a partner, or part of our incredible team, your trust and confidence inspire us every day. Thank you for being a part of our story. We look forward to continuing to serve you with integrity, professionalism, and a genuine passion for helping businesses thrive.

Stay tuned for updates, and once again, thank you for believing in Eastgate Commercial Finance!

Understanding HMO valuations

Wed, 24 Jul 2024 15:46:28 GMT

Understanding HMO valuations

As a property investor, you’re constantly seeking opportunities to maximise returns and make informed decisions. With their increased yield potential, Houses in Multiple Occupation (HMOs) offer a strong investment potential, but their valuation can be complex. In this blog, we’ll explore the key considerations for securing an investment-based HMO valuation, equipping you with the knowledge needed to assess properties effectively and unlock their true potential.

1. The scale of conversion:

Assess whether the property can easily revert to a family home. If it can, achieving a commercial valuation becomes unlikely. Consider factors like bedroom layouts (ensuites, for instance). If conversion costs are high and the property is best suited for HMO use, this works in your favour.

2. What planning use class does it have:

C3: Single-family homes fall into this category. Their valuation is based on bricks and mortar, which relies on comparable sales in the local area.
C4: HMOs with up to 6 beds. C3 properties have permitted development rights to convert to C4 use (unless in an Article 4 area).

Sui Generis: HMOs with 7 beds or more. Full planning permission is required for Sui Generis use.

3. Article 4 Direction:

Check if the Local Authority has implemented Article 4 Direction in your property’s location. This removes the permitted development right to convert from C3 to C4 use without planning permission. It helps manage HMO numbers where family home availability is at risk.

4. Lender Preferences:

Many mortgage lenders consider only bricks and mortar valuations, regardless of planning use or Article 4 direction. Investment-based valuations may not be feasible.
Some lenders, however, consider investment valuations based on the factors mentioned above.

Understanding how a lender will value a HMO isn’t straight forward and involves grasping their criteria and how they instruct their panel valuer.

Looking to secure your first commercial mortgage? 7 top tips for businesses

Wed, 24 Jul 2024 15:42:15 GMT

Looking to secure your first commercial mortgage? 7 top tips for businesses

If you are operating your business from home or perhaps renting space, buying your first commercial property can be an exciting, yet daunting task. Securing a commercial mortgage requires strategic planning and attention to detail. Here are 7 top tips to help you take control of the process:

Early Preparation: Avoid last minute rushes. Failing to prepare may leave you relying on good fortune.

Engage an Accountant: A skilled accountant ensures your financial figures are in order. Lenders rely on past performance rather than future optimism; provide solid evidence of your business stability.

Prepare Formal Accounts: Whilst not wholly necessary for a sole trader, formal accounts enhance your chances of securing the best possible terms.

Company Bank Account: Set up a dedicated business account for financial clarity.

Credit Commitments: Consistently meet credit commitments to maintain a positive track record. Isolated minor credit hiccups can be explained, avoid a pattern of poor credit management.

Personal Drawings: If you trade as a Limited Company think about the level of dividends you need to draw, if possible, try not to draw all of the profits.

Balance Growth and Commitments: Whilst finance to fund business growth can be good, be careful not to overcommit your cash flow.

Remember, thoughtful preparation and expert guidance can significantly improve your chances of securing the right commercial mortgage for your business. Consulting with a reputable broker can save you time and money, whilst ensuring your business is favourably presented to lenders.

Portfolio mortgages: the pros and cons?

Wed, 24 Jul 2024 15:39:30 GMT

Portfolio mortgages: the pros and cons?

If you own multiple mortgaged investment properties, you’ll face a crucial decision: individual mortgages for each property or a single mortgage covering your entire portfolio. Let’s explore the pros and cons to help you make an informed choice.

Pros:

Streamlined Process: With a portfolio mortgage, you’ll submit only one application and handle a single set of legal work. This efficiency can significantly reduce processing costs.

Aligned Expiry Dates: A portfolio mortgage aligns all product expiry dates to a single date. This simplifies administration and ensures smoother management.

Simplified Administration: Enjoy the convenience of a single direct debit payment per month and a unified renewal process for all properties in your portfolio.

Holistic Affordability Assessment: Lenders evaluate affordability and loan-to-value (LTV) ratios across your entire portfolio. This approach can benefit lower-yielding properties by considering the overall picture.

Favourable Terms: Some lenders offer better terms for a single, larger loan compared to multiple smaller loans.

Cons:

Potentially Higher Interest Rates: If you own fewer than four buy-to-let (BTL) properties, be aware that interest rates on portfolio mortgages may be slightly higher.

Property Sale Considerations: Selling a property from your portfolio requires coordination with the lender. You’ll need to arrange its release from the portfolio.

Remember, deciding whether to consolidate your mortgages into a portfolio is complex. Take the time to weigh your options carefully before making a choice.

Choosing Between Bridging Finance and Buy-to-Let Mortgages

Thu, 04 Jul 2024 13:00:18 GMT

The question of whether to opt for bridging finance or a buy-to-let mortgage arises frequently. The answer, however, hinges entirely on individual circumstances. Below, we outline key considerations for each option to guide potential buyers in the right direction:

Bridging Finance:

Offers rapid completion, comfortably fitting within a 20-day auction timescale when all parties are actively engaged.
Allows for light or heavy refurbishments to the property.
Can fund necessary works if required.
Suitable for purchasing unhabitable or unmortgageable properties (look for “cash buyers only” in property sales particulars).
No immediate income generation from the property is necessary.
Allows quick refinancing without early repayment charges.

Buy-to-Let Mortgage:

Generally, features lower interest rates compared to bridging finance.
Lenders assess the property’s rental income to determine borrowing capacity, assuming income from day one.
Major works beyond routine maintenance usually require prior lender consent.
Property must be in a lettable condition at the time of purchase.

For those planning to acquire and refurbish a property for long-term ownership, bridging finance is likely the most suitable solution. It ensures swift acquisition, maintains favour with lenders, and facilitates capitalising on increased property value without early repayment penalties.