Shareholder FAQ.

Shareholders Questions Answered

Shareholder FAQ2021-11-29T11:51:07+00:00
Why choose Capital 8 Finance instead of going direct to a lender?2023-01-09T12:55:51+00:00
  • We can help save borrowers time researching the many choices available and source a loan better suited to meet a borrower’s needs
  • We support and provide assistance for our clients throughout the entire process
  • As a broker we have access to over 300 different lenders offering the full range of business and property finance
What forms of finance can you provide?2023-01-09T12:56:20+00:00
  • Mortgages
  • Buy-to-let Mortgages
  • Specialist Mortgages
  • Commercial Mortgages
  • Bridging Finance
  • Property Development & Refurbishment Finance
  • Mezzanine Finance
  • Joint Venture (JV) Finance
  • Business Loans
  • Asset Finance
  • Invoice Finance
  • Stock & Trade Finance
  • Revolving Credit Facilities
How can I get in touch?2023-01-09T12:57:05+00:00
You can contact us at Capital 8 Finance by:
What fees shall I have to pay upfront?2023-01-09T12:57:46+00:00
At Capital 8 Finance, we charge a broker fee.
For regulated mortgages, we charge a fee on application once an agreement in principle has been provided from the lender.
For commercial finance we charge a fee on completion. This can be paid separately or added onto the loan.
However, be aware a borrower will have to pay some upfront fees as some lenders charge an application fee and a valuation fee will always have to be paid upfront by the borrower as this cannot be added onto the loan unless the lender offers free valuations.
Do I get any other benefits of being a Business Success Plan client?2022-05-03T10:48:19+01:00

In short, yes you do! As a Business Success Plan client you will receive a 30% discount off our standard 1% Broker fee when arranging commercial finance through us which can potentially save you thousands of pounds.

For example, if you were to arrange a commercial mortgage for £1m the standard 1% fee works out to £10,000. However, by being a Business Success Plan client you would only pay £7,000 which would immediately result in a £3,000 saving. This will be on top of the actual interest costs that you will be likely to save by coming through an independent finance broker like us too.

How do you make your money?2022-05-03T10:47:55+01:00

By helping you to plan ahead and set timeframes on what you want to do and by when we will be there to help you arrange what is required. As a fully independent whole of market broker we are able to obtain the most appropriate solutions for you and support you every step of the way.

When we arrange finance or other solutions for you we will usually be paid a commission and will always disclose to you what that amount is beforehand. The amount we receive will be built in to the quotations you receive so there is nothing else to pay.

How Much does the Business Success Plan cost?2022-05-03T10:47:32+01:00

We do not charge for this service as it is our mission to bring planning for your financial future to all business owners, irrespective of the size of the business.

How does the Business Success Plan work?2022-05-03T10:47:08+01:00

The Business Success Plan is designed to help you take time out of your busy schedule at least once a year to plan ahead. It is very difficult for people to do this usually due to time pressure and so we give you a nudge each year to make sure that you spend some time focusing on your business.

What is the ultimate goal of the Personal Success Plan Service?2022-05-03T10:41:53+01:00

We believe that everyone, not just high net worth individuals, should have access to a free Personal Success Plan every year. We are committed to working with people at all levels to help them achieve their goals and fully support them at the right time to help them turn what they want into reality.

Can I also have a Business Success Plan too if I have my own business?2022-05-03T10:41:32+01:00

Definitely! We encourage people who have their own businesses to take up our offer of a free Business Success Plan too so that we can help them to achieve the success they are looking for going forward.

How long do the Personal Success Plan meetings take and what do I get afterwards?2022-05-03T10:41:10+01:00

The reviews can take as little as half an hour but we will discuss things with you for as long as you need. Planning your future is not something that should be rushed and we are there to do things properly with you.

Once the meeting has been completed we will send you a full report to confirm our discussions. It will outline what you are planning to do and when and will show you the dates that we have diarised for talking to you specifically about those things you want to do.

Is it just finance that you deal with in the Personal Success Plan?2022-05-03T10:40:41+01:00

Finance related solutions do of course feature in our Personal Success Plans but the area’s we cover are as follows;

– Helping you buy a new home

– Helping you to buy additional property such as a buy to let or a second home

– Saving you money on your monthly mortgage costs

– Helping you to get a new car via

– Getting you better value Defaqto 5 star rated Home Insurance

– Wills, Trusts and Estate Planning (including Lasting Powers of Attorney’s)

– Private Healthcare Plans – to either provide you with cover for the first time or get a better terms than your existing policy

– Getting you to think about and planning for your retirement

– Making your money work harder

For some of the solutions above we do this ourselves and for others we will introduce you to trusted third parties who are regulated for that class of business.

Do I get any other benefits of being a Personal Success Plan client?2022-05-03T10:40:00+01:00

In short, yes you do! As a Personal Success Plan client you will not be charged a Broker fee when arranging mortgage finance which will save you up to £500 whilst giving you full access to fully independent financial advice which can potentially save you thousands of pounds during the term of a mortgage.

How do you make your money?2022-05-03T10:39:32+01:00

By helping you to plan ahead and set timeframes on what you want to do we are able to be there at the right time to help you arrange what is required. As a fully independent whole of market broker we are able to obtain the most appropriate solutions and support you every step of the way.

When we arrange finance or other solutions for you we will usually be paid a commission and will always disclose to you what that amount is beforehand. The amount we receive will be built in to the quotations you receive so there is nothing else to pay.

How Much does the Personal Success Plan cost?2022-05-03T10:39:08+01:00

We do not charge for this service as it is our mission to bring planning your financial future to everyone.

How does the Personal Success Plan work?2022-05-03T10:38:46+01:00

The Personal Success Plan is designed to help you take time out of your busy schedule at least once a year to plan ahead. It is very difficult for people to do this usually due to time pressure and so we give you a nudge each year to make sure that you spend some time focusing on yourself.

What is Business Contract Hire?2021-10-08T17:42:58+01:00

Business Contract Hire

A simple and cost effective way to fund any number of vehicles. Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses requirements.

What is Personal Car Leasing?2021-10-08T17:43:25+01:00

Personal Contract Hire

As the name suggests Personal Contract Hire (also known as personal leasing) is simply contract hire but for individuals.
Personal Contract Hire (PCH) is based on a fixed term contract where customers pay an agreed monthly charge for the use of a vehicle for a previously agreed period.

How does vehicle leasing work?2021-10-08T17:43:57+01:00

How leasing works

A lease is essentially a long-term rental agreement, offering exclusive use of a car for a set period at a fixed monthly price.
As a business, this is the most cost efficient method of funding the vehicles as it takes advantage of the tax and vat regulations to reduce the whole life running cost of your vehicles and is supported by the buying power of the finance company, to assist in reducing the cost even further.
The greatest cost of running any new car is depreciation, and many new cars will lose more than half their initial value after the first three years of ownership.

Leasing explained

Leasing a car lets you avoid any unexpected costs by offering a fixed monthly payment for the term of the lease.
Unlike dealer finance or bank loans you only pay for the depreciation of the vehicle over the term rather than the full capital value.
Rather than pay large deposits you simply pay a small initial amount, usually equivalent to three monthly payments, at the start of the lease. Then, at the end of the lease period (typically two or three years), you simply hand the car back. The job of selling the car and picking up the tab for depreciation is the responsibility of the lease company.

Do you provide the car and the finance when I do a vehicle lease with you?2021-10-08T17:44:23+01:00
The simple answer to this is yes we do, we provide both. As we are not tied to any one vehicle showroom or finance company we are able to shop around on both elements to get the best price on both. This means you save money as opposed to going to a dealer direct.
As a Broker, how do you get paid for dealing with my transaction?2022-01-18T18:01:28+00:00

When a Broker acts for a Client it is standard market practice for the firm to be paid a Broker Fee from the Client and also receive what is known as a ‘Procuration Fee’ when the mortgage completes. This is in addition to any commission which is due on any insurance / protection products purchased.

At Ela’s Finance, we operate on a fully independent basis which means that we can obtain great value financial products for you which can potentially result in thousands of pounds of savings for you over the mortgage term.

In line with our commitment to doing the best we can for our clients, we offer a free, no obligation initial meeting to discuss your requirements in more detail so we can establish how we can help. At the end of the meeting we will let you know if we are able to assist and will advise you of any Broker fee that will be charged for dealing with your case.

We will make sure that any procuration fee paid by the lender or commission paid by an insurance company we recommend in relation to the products you take are all fully disclosed to you in advance so that everything is clear.  These payments do not alter the amount you pay as they are automatically built in to the quotations which are given by Lenders and Insurance companies but we will always tell you what is to be paid by them to us so that everything is transparent to you as our customer.

I have had issues with credit in the past – will I be able to get a mortgage?2021-10-06T17:17:11+01:00
The answer to this question is that it depends on what has happened in the past, how long ago and what amounts were involved. We have access to lenders that will consider credit profiles with adverse events on them so the best thing to do is to contact us to let us have the details and we will be able to advise you from there.
What is Stamp Duty and how much will it be?2021-11-29T18:50:17+00:00

Stamp Duty Land Tax (SDLT) is a tax which is levied by the Government when property in the UK is purchased. It is paid by the purchaser of the property.

The amount of Stamp Duty due will vary depending on the price of the property, whether this is your first purchase and also if you own other properties already and will hold more than one after the purchase has gone through. If additional properties are owned then a percentage surcharge is also levied which will inflate your cost.

To find out how much Stamp Duty you will need to potentially pay, click on the Stamp Duty Calculator button below and once completed it will let you know what the cost will be (please note that this calculator does not cover commercial property purchases where the purchase price is subject to VAT).

What fees are payable with a mortgage?2022-01-18T18:03:02+00:00

This will depend on the type of mortgage product that you choose but usually a preferential mortgage rate product may  have a ‘Product fee’. The amount of this will be linked to the type of product and we will advise you in advance what the associated costs will be. We will be happy to provide costings for your individual case, including the level of any Broker fee to be charged, so there are no surprises at any point in the process.

In terms of other costs, you will need to pay for your legal fees and survey fee although some lenders may cover the cost of that for you depending on what type of product has been recommended after taking into account your situation. Local Authority Search fees and other disbursements will also be payable to your Solicitors as well as Stamp Duty Land Tax (SDLT).

To find out how much the Stamp Duty will be on your purchase, please click on the button below to use our Stamp Duty Calculator.

How long does getting a mortgage take?2021-10-08T08:26:46+01:00

This will depend on a number of factors such as how quickly you are able to provide the information needed and how long it takes you to find a property.

Getting an Agreement in Principal involves discussing your mortgage requirements and you providing the information requested – the quicker the information is back the faster we can get the Agreement in Principal for you. Typically we will be able to obtain the Agreement in Principal within 48 hours from when all of the information has been provided to us.

Once your property has been found and the application is submitted it usually takes approximately 2 – 3 weeks to obtain the full offer once the lender has completed their valuation and checks. Some lenders will be faster than this timeframe whilst some may require more information which could add some time to the final offer being produced.

What is the process of getting a mortgage?2021-10-06T17:14:03+01:00

Obtaining a mortgage is likely to be the biggest financial commitment that you will enter into so it is important that a lender can satisfy themselves that the amount being applied for is affordable. We want you to get the property that you have set your heart on but also be able to comfortably afford the monthly repayments to keep you there.

Initially we will look to get you an Agreement in Principal which is an indication of the lenders willingness to lend to you. Getting this is good as it will enable you to show evidence to Estate Agents and / or Sellers that you are well prepared and are well on your way to having the money needed arranged.

From there, once you have found a property we will then process your full mortgage application. Once underwritten the lender will instruct a valuer to go out and inspect the property. Once the value has been confirmed and is acceptable to the lender a mortgage offer is then produced which is the point when the funds have been fully agreed and will be ready for your Solicitor to drawdown when the legal conveyancing work has been completed.

As a Broker, how do you get paid for dealing with my transaction?2022-01-22T10:07:20+00:00

When a Broker acts for a Client it is standard practice for the firm to receive a percentage of the Arrangement Fee / Lenders set up fee that is charged by the lender. The percentage paid to a Broker is usually 50% of the lenders fees charged. This will be in addition to any commission which is due on any insurance / protection products purchased.

Depending on the type of financial product taken, a Broker fee of 1% of the finance amount taken may also be payable. Our initial meeting is always free of charge and we will endeavour to get you Indicative Terms so you can see what the terms and conditions are likely to look like. If you decide to proceed we will then ask you to sign a Broker Fee agreement and will advise you in advance what the Broker Fee will be and whether a commitment fee will be required. Any Broker Fee agreed becomes due for payment on production of a full offer of finance although on we may agree to wait until completion for payment if that is your preference. However, it should be noted that once the full offer is produced the Broker fee will be payable in full whether the case completes or not.


What does the term ‘ERC’ mean?2021-10-06T16:59:12+01:00

ERC stands for “Early Repayment Charges” generally applied on longer term Commercial Mortgages ( to protect the lenders anticipated margin on the deployment of the funds) if the loan is redeemed in the early years. Many lenders will charge ERC’s up to a three or five year point in the loan usually on a reducing scale but these can be as high as 5% of the mortgage amount if a facility is repaid in year 1.

What charges are associated with setting up a commercial or development mortgage?2022-01-22T10:08:54+00:00

There are no fees to pay to secure ‘ Indicative Terms’ from the mortgage provider – we offer this service free of charge. Once the Indicative Terms are accepted by the client it will then be necessary to gather the further information needed for the full application to be submitted and also schedule and pay for any valuation report(s) needed by the underwriter.

After the valuation reports confirm a positive and viable loan proposition the lender will issue the formal offer subject to legal due diligence. Some lenders will require their own legal costs to be covered by the client though it may be possible for the clients / lenders solicitor to represent both parties. In addition to the interest charged on the mortgage or development loan there will generally be a set up fee of between 1% and 3% of the loan.

Depending on the type of product taken, a Broker Fee for acting on your behalf to obtain the finance is usually charged at a rate of 1% of the amount to be borrowed. This becomes payable once we have obtained the full finance offer for you post underwriting and valuation. If you would like to defer the payment until the finance transaction completes to assist with your cashflow we can potentially consider this on a case by case basis but if the transaction subsequently falls through the Broker fee will still be payable to us in that event. We will always advise you of the exact Broker fee to be charged once we have obtained indicative terms and if a commitment fee is to be charged on our appointment this will be fully disclosed to you before you proceed.

What does the term ‘Mortgage Affordability’ mean?2021-10-06T16:59:37+01:00

When an underwriter is assessing a mortgage application the key criteria is the applicants ability to afford the loan repayments – sometimes also referred to as a ‘stress test’. Many mortgages will offer an ‘easy start’ period on interest only terms but most mortgage lenders wish to see both capital and interest repaid thereafter. In assessing your ability to repay the loan the underwriter will look at business income / profits via any accounts held and any other sources of confirmed income that you have. In situations where you are renting business premises and wish to purchase a freehold property (perhaps as a sitting tenant) then the rent you pay will be assessed as an ‘add back’ when looking at the overall position.

Can I borrow against the ‘goodwill’ of a business and equipment, fixtures and fittings?2021-10-06T16:59:49+01:00

In general terms yes. If you are buying a business trading from freehold premises we will obtain a professional report to verify the overall value of the business goodwill etc which is sometimes referred to as ‘market value’ or MV1. Subject to satisfactory confirmation it is usually possible to secure an advance against the overall business valuation. Where the purchase of a trading business also includes machinery, vehicles equipment, stock etc. it is generally more appropriate to structure a separate loan to acquire these assets on a short- term lease or stock finance arrangement.

What level of support will I get for a property development loan?2021-10-06T17:00:04+01:00

With a Property Development loan much depends on the type of project being undertaken, the overall borrowing requirement and the anticipated profit margin that project will generate. In addition the proven experience of the developer, their financial standing and / or the proposed contractor will also count heavily towards the underwriting decision.

What is the maximum Loan To Value (LTV) achievable on a commercial mortgage?2021-10-06T17:00:18+01:00

There are no hard and fast rules and each case will be assessed on merit. In general terms we advise our clients to be prepared to deposit circa 25% to 30% of the property or business value. ie a LTV in the range 70-75%. Mortgages for pubs will generally be limited to 60% to 65% LTV due to the higher risks associated with this sector of the market. Sitting tenants can often secure a higher advance.