Commercial Mortgages / Real Estate:
- Engineering company - HSBC Banked for 33 years
- Property owned by Director in his own name
- 3 x trading businesses but no commercial leases in place.
- HSBC had £175,000 outstanding on existing mortgage but customer wanted to uplift to £500K to continue to expand site (2 acres).
- £250K on deposit with group making on average £300K per annum.
- HSBC would not accommodate as ‘didn’t meet criteria’. Barclays offered but wanted lease agreements drawn up between the landlord and his own companies, a debenture and several other performance covenants.
- Client requested assistance from B2B. We secured funding in 4 days on an ‘Offset Mortgage’ to make some of the monies on deposit work harder.
- Margin 3.7 but 33% of balance offset-able significantly reducing overall cost.
- No covenants. No Debenture. No commercial lease agreements.