Loan to Value – 75%
Loan Amount – £575k
Interest Rate – 2.8% Over Bank Base Rate
Arrangement Fee – 1.5%
Term – 20 years
Our clients owned a Logistics company, and the lease over the current trading premises was coming to an end. This was the perfect opportunity to re-locate, and purchase a larger, more suitable unit to run the business from.
Whilst our clients had a good deposit available, they were keen to retain as much cash in the business as possible, therefore our mandate was to look for a lender who would offer a high Loan to Value, but obviously still at competitive rates.
We pulled together a sufficient package of information to enable us to put a strong presentation to a number of High Street banks.
During the presentation process we were able to demonstrate strong trading accounts along with a robust management team, which enabled the banks we had approached to go outside their normal parameters and policy, meaning our client had three excellent proposals to choose from.
They opted for a 75% LTV Owner Occupier Commercial Mortgage product, and because of the low rate and long loan term, the monthly mortgage repayments were lower than the rent they were currently paying.