Cambridge & Counties Bank launches VAT loan for commercial properties

The product allows investors and owners to spread up to 100 per cent of the VAT payable on the acquisition of commercial property assets over five months, alleviating what can be a significant cost and cashflow problem.

The product is only available in conjunction with a new Cambridge & Counties Bank Commercial loan and to customers who are VAT registered.

The bank’s commercial loans are available for up to 70 per cent loan to value (LTV) of the open market value on an asset.

With an additional VAT loan providing up to 20 per cent, customers could borrow a combined maximum 90 per cent LTV inclusive of all fees.

The bank said it has seen strong demand for its real estate lending solutions and expects demand to continue in 2022.

Flexibility of VAT loan is the key

Simon Lindley, chief development officer at Cambridge & Counties Bank said: “The flexibility of our new VAT loan takes the pressure off cash reserves and cashflow, allowing buyers to retain working capital to fund other important business areas. As an alternative funding line, it smooths cash flow peaks and troughs without using up existing funds.

“Cambridge & Counties Bank is one a very few institutions to offer such a product and we think ours is the most competitive in the market. Property values and transaction costs remain high and, in talking to borrowers as well as the brokers that serve them, we are very aware of their need for dedicated support. We’re delighted to be expanding our support with this new VAT loan service.”

In June, Mortgage Solutions reported that Cambridge & Counties Bank’s lending had topped the £1bn mark as it celebrates its 10th anniversary in June this year.