Commercial Finance - Debt Service Cover Ratio (DSCR)
The DSCR is often quoted as a percentage by commercial mortgage lenders. It is equated from dividing the annual rental payments by the annual capital and interest payments to create the ratio. It is the amount of cash flow above the required cash to service the mortgage.
The usual DSCR is 120% for most high street banks. There are some self cert lenders that will go below 100% but only for owner occupied properties.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
