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Commercial Broker Fee High?
sunflower_lass
Posts: 35 Forumite
We've just started talks with a commercial broker about a re-mortgage for our Farm. The mortgage will be £150,000 on a property worth £400,000 (which we currently own outright)
Our business plan forecasts income of £20k in the first year with no drawings, plus my husband's salary of £56k, so hopefully we've a strong case.
Our broker visited the site last week and has now come back with his fees: £750 engagement fee and £1,000 on success. Is this a bit high? Should we be advised to shop around first?
He thinks we can get a mortgage of Base+4%, with a 2% arrangement fee.
grateful for any thoughts, thank you
Our business plan forecasts income of £20k in the first year with no drawings, plus my husband's salary of £56k, so hopefully we've a strong case.
Our broker visited the site last week and has now come back with his fees: £750 engagement fee and £1,000 on success. Is this a bit high? Should we be advised to shop around first?
He thinks we can get a mortgage of Base+4%, with a 2% arrangement fee.
grateful for any thoughts, thank you
0
Comments
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This is a commercial transaction and these fees are quite usualI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
Commercial is not as cheap as residential. However, it is a business expense so you can offset it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Thanks - just wanted it sanity checked! The broker seems good so i think we are confident to go ahead 0
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