Commercial Remortgaging?

TenThirteen

I'm looking for advice regarding a broker/where to find a commercial remortgage please...

I bought a 'going concern' in April 2006 which I am successfully running (got the first years accounts to prove it!) but as I was only 24 at the time and hadn't run a business before I didn't shop around for a mortgage...

I went to my current account provider (HSBC) and they offered me a commercial mortgage for £142,500. I wanted the business and didn't think I could get anyone else interested so I signed up. The high arrangement fee I paid means I am not tied and the mortgage can be taken over...

This HSBC mortgage is 2.75% over base :shocked: and is repayment over 15 years.

I paid £189,950 for the property and it's now estimated to be worth £260k :j (obviously a new independent valuation would be necessary) and I'm now looking to remortage it not to release money (I can afford the mortgage) but just to save myself some money every month.

I also took out a 10k business development loan last winter to pay for some refurbishments and I would ideally like to pair them up. So, I have about £136k on the mortgage and about £11k (inc interest) on the loan.

I was cold-called by Natwest and have met with one of their reps and have been offered a 15yr repayment mortage fixed at 2% over base which includes the loan and the arrangement fee (£1800) is also included (because ideally I'd not like to spend any of my business cashflow on this and would be happiest including set-up/arrangement fees in the remortgage.)

Bottom line here is that at 2% (vs. 2.75%) over base and merging the loans will save me about £200/month so I'm now wondering if I can perhaps get a better deal (1.75% over base anyone?) from another mortgage lender... any suggestions for a good broker, whole of market. etc. I'm going to call London and Country this morning but are these guys the best for commercial mortgaging?

TenThirteen

Doh! L&C don't do commercial

fguk

Quick browse on the internet gets you a lot of websites for commercial mortgages.

http://www.gowithgo.co.uk/landing/Mortgage.aspx?ATC=goo025&se=goog&cat=Commercial+Mortgage&kw=commercial+mortgages&gclid=CMOb3LOWmI8CFSEaEAod5BcJGw

http://www.moneyfacts.co.uk/business/bestbuys/business-mortgages.aspx

http://www.endsleigh-financial.co.uk/commercial-mortgages.html

Even if you only use these sites to compare, then approach companies directly, I am sure you will be able to save even more money.

Good luck with it.

MortgagesInc

Or try a specialist commercial broker - ASC used to be quite good

Conrad

My main business mortgage is with HSBC. I renegotiated thwe terms down to 1% over base and a £500 arrangemnt fee.

I initially got 2 other written quotes, one from Lloyds, the other RBS after having told them I was very rate and fee conscious.

I then approached my business manager and said "I must take the best commerical decisions for my business, nothing personal, but I wont stay unless you do me base + 1% and a low fee."

If you change lender it can be hassle. The plonker employed Bank slaves have this 'business School' mentality that a business plan is required for example which should include market research ("hello stranger in the street, if I open a shop will you us it"?)!