Commercial Mortgage

socrates

I have a question about a commercial re-mortgage - a shop/office with two flats upstairs - is this relevant to this site?

homer_j_3

yes. Most brokers are residential but if you have a mortgage question, ask away

socrates

My current deal is with HSBC - I have been a customer for 20 years - a new account manager has come in and seems dead set on being a pain.

The property value is £500k o/s mortgage is £297k - income on the property is £2k pcm from office, £800 pcm from two bedroom flat and £700 pcm from one bedroom flat. Currently paying around £2950 pcm on a part capital part repayment basis with 13 years left. I want to reduce my monthly payments as much as possible for the next two years. HSBC new offer after extreme pressure is 1.55% above base split the loans between the commercial part and residential partas follows:

comm: £122,030 over 13 years -1.55% above br - £1214 pcm

res: £175,250 over 23 - years - 1.55% above br - £1313 pcm

£250 arrangement fee - saving £440 pcm

I own the freehold, there is no redemption fee from HSBC - I have been offered another deal by Nat West as follows:

1.5% above base on £305k - this is to cover 1% arrangement fee , legal and survey fee - plus a small amount of cash left over -this is over 20 years and includes the first two years at interest only - £1843 for first two years - followed by a £700 increase after that period. They are also prepared to lend a further £40 - 50k in cashback should I need it all on the same basis.

I know some people achieve 1.25% above base and after 20 years and several arrangement fees with HSBC I would have thought they would play ball.

If I have ommitted anything please let me know.

As always thanks in anticipation!

WildHaggis

You really need to talk to a specialised commecial broker. You need to be outwith (there's a cute Scottish word) the high street lenders for the right product.

socrates

any specialists on Commercial Lending are more than welcome to private message me - I have confirmed this is within the site rules.

socrates

you really do some sound advice on here - thanks!

paulos1969

Some of the non high street lenders are offering some very attractive deals for this type of proposal. It sounds as though the rental income will cover the debt service - which is a good starting point.

You might want to try Skipton Building Society or Norwich & Peterborough B/Soc.

I am a commercial broker and would be happy to give you contact details