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Commercial mortgage gripes!
sunflower_lass
Posts: 35 Forumite
We're in the process of re-mortgaging our commercial property which we own outright. It's worth around £400k, and we're asking for £150k, so less than 40% LTV.
Via our broker and a Barclays business manager, we've *verbally* been given an offer at 4% above base... Great!
BUT: Now Barclays are insisting we open a business bank account with them, to "service the loan", BEFORE they'll put any offer in writing. Our concern is that
a) we already have business banking elsewhere that we like
b) their account incurs charges
c) we haven't had any written offer confirmation, or in fact anything written at all.
We don't want to use Barclays for our regular banking - can they force us like this?
Via our broker and a Barclays business manager, we've *verbally* been given an offer at 4% above base... Great!
BUT: Now Barclays are insisting we open a business bank account with them, to "service the loan", BEFORE they'll put any offer in writing. Our concern is that
a) we already have business banking elsewhere that we like
b) their account incurs charges
c) we haven't had any written offer confirmation, or in fact anything written at all.
We don't want to use Barclays for our regular banking - can they force us like this?
0
Comments
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Any thoughts anyone? Thanks in advance!
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Commercial business means commercial terms. If you don't like the offer try elsewhere.0
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Thrugelmir wrote: »Commercial business means commercial terms. If you don't like the offer try elsewhere.
Thanks thrugelmir - good point! We're getting irritated because they won't give us a straight answer. Not a good start when you're going to be tied to a bank for 25 years!0 -
Why should they lend to you when they could lend to one of their own customers where they are monitoring the business bank account to protect their risk.
Presumably, your current business bank has not offered terms?I 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
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