Cambridge & Counties Bank’s new VAT loan product only available to customers with commercial loans

Cambridge & Counties Bank has continued to see strong demand for its real estate lending solutions and expects demand to continue in 2022. Cambridge & Counties saw a 47% rise in gross new lending in 2021 (£323m record) as it helped SMEs, entrepreneurs, and real estate professionals capitalise on investment and growth opportunities in the UK.

The specialist lender’s latest product will allow investors and owners to spread up to 100% of the VAT payable on any acquisition of commercial property assets over five months, alleviating any significant cost and cashflow problems.

However, this product is only available in conjunction with a new Cambridge & Counties Bank commercial loan and to VAT-registered customers.

The bank’s commercial loans are available for up to 70% LTV of the open market value on an asset. With an additional VAT loan providing up to 20%, customers could borrow a combined maximum 90% LTV inclusive of all fees.

Commenting on the new product, Simon Lindley, Cambridge & Counties Bank chief development officer, has 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.”