Commercial mortgage gripes!

sunflower_lass

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?

sunflower_lass

Any thoughts anyone? Thanks in advance!

Thrugelmir

Commercial business means commercial terms. If you don't like the offer try elsewhere.

sunflower_lass

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!

amnblog

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?