Commercial Mortgage Rate

[uggs4u]

Hi ive been offered a commercial mortgage rate of 5.6% by lloyds tsb fixed for 25 years,for borrowing 160k against my shop for security... Does that seem reasonable or shall i try elsewhere? My manager has said he will match any better offer i can show him in writing. On the other hand he has also offered me variable at 3.3% + base rate, or i can fix part amount on variable and the rest on fixed. Just trying to decide which is the best route can anyone in the know how advise please

Thanks

[rog007]

It's how it feels to you. There are stacks of variable offers out there but we're all different; different outlooks, different attitudes to risk, different views on how the economy may go, different family and business circumstances. What are the conditions attached to it like? What are the penalties for overpaying, coming out early etc? This is really a personal decision based upon your own unique circumstances. If it feels right to you then it is probably right for you. If not...keep looking!

[splodge s4]

That sounds very reasonable, commercial isnt really my thing but if you bank with lloyds and you get on well with the business manager who knows your business history then that can really speed things up.

If you shop about & looked elsewhere to a bank that doesn't know anything about you then they will want to see the ins & outs of everything, and then prob offer you a similar or worse deal.

As for variable or fix, thats down to your attitude to risk but im a big fan of fix rates, you have security knowing what your paying, rates will go up & that tracker will prob follow LIBOR rates not Bank of England. As mentioned above, check redemption penalties & terms & conditions for overpayments etc & if it feels right then go for it.

£160k....mmm Aston DBS.....