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commercial mortgage Help cutting interest
newsseller12
Posts: 172 Forumite
Hi I have a commercial mortgage with RBOS over 15 years, The loan is on a Shop with large living accomodation.
I now have 144k outstanding and 14 years left on the loan.
I think I am currently paying around 8.5% interest. My monthly payment is £1400.21.
The property is worth 250k.
I think I am paying too high interest and am looking for a way to reduce costs on this loan, any help welcome!
I now have 144k outstanding and 14 years left on the loan.
I think I am currently paying around 8.5% interest. My monthly payment is £1400.21.
The property is worth 250k.
I think I am paying too high interest and am looking for a way to reduce costs on this loan, any help welcome!
0
Comments
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Not the worst rate ever on a commercial mortgage to be honest.
i take it you're self employed too. what industry you in?
Most commercial lenders will want you to have a net profit of around 130% of your mortgage payments.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What kind of shop is it?
It has a seperate entrance?
Commercial mortgages are a bit more pricey than the residential ones.0 -
It is a Newsagents/convenience store,
We have no seperate front entrance to our living accomadation although we also have a private entrance to the rear.
Mortgage payments easily meet the 130% criteria.0 -
With decent equity ration I would expect about 2 to 2.5% over base (i.e. 7 to 7.5%) plus 1% fee to set up. Have you tried speaking to RBOS?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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