commercial mortgage rates

[uggs4u]

Hi, ive just purchased my business property freehold via auction,i was renting before... I paid for the purchase through money lent through friends and family and savings. I did speak to my business bank manager beforehand to raise the capitol but was told it could take upto 12 weeks for loan money to come through, which was too long as ihad to complete in 28 days as per auction contract rules.I was told by my bank manager the rate i would be getting would be between 4 to 6 percent on a commercial mortgage, however now that time is no longer an issue i would like to see if i can get a better rate elsewhere... Can anyone recommend a bank or building society that may do a better deal please? i did read on here a few months ago somebody got 3.3 percent with no penalty for overpayments

[Biggles111]

I recently bought a shop and 2 flats on a commercial mortgage, rate was 3.25%+base plus an upfront fee of 1.5%. LTV was 60%. This was arranged earlier in the year but only recently drawn down. The bank (Nat West) told me they would not be able to offer the same deal now, and my mortgage broker has since stopped sending business to them. See how you get on, it may be worth paying a commercial mortgage broker to find what you need if you cannot get it on the high street.

Edited by Biggles111 on Thursday 9th December 13:37

[uggs4u]

Have spoke to some commercial brokers they are charging around £2500 for their fees

[2 5HAN]

2500 sounds like a lot but it depends on your view on what they will save you over the term of the mortgage?

I am sure there will also be brokers that will do the homework for you but I guess at a commercial level they will expect some form of retainer

I know that Lloyds are still actively lending but their rates are dependent on the market segment you are in and also the rent / mortgage cover that you can demonstrate for your proposal

Also talk to your accountant as there are some clever ways of renting the building from yourself via a Ltd company etc.

[Biggles111]

uggs4u said:

Have spoke to some commercial brokers they are charging around £2500 for their fees

Sounds about right depending on the size of the advance. Our broker made 1% from us and 0.5% of this as fees to him from the bank. It is worth it though - he negotiated us a good rate.

[uggs4u]

which broker did you use?

[scratch pervert]

uggs4u said:

Hi, ive just purchased my business property freehold via auction,i was renting before... I paid for the purchase through money lent through friends and family and savings. I did speak to my business bank manager beforehand to raise the capitol but was told it could take upto 12 weeks for loan money to come through, which was too long as ihad to complete in 28 days as per auction contract rules.I was told by my bank manager the rate i would be getting would be between 4 to 6 percent on a commercial mortgage, however now that time is no longer an issue i would like to see if i can get a better rate elsewhere... Can anyone recommend a bank or building society that may do a better deal please? i did read on here a few months ago somebody got 3.3 percent with no penalty for overpayments

YHM

[Biggles111]

uggs4u said:

which broker did you use?

I used a company based in Plymouth, so may be a bit far. PM me if you still want their details.