Commercial 'Offset' Mortgage - no covenants.

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.