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Commercial Mortgage 7.2%

  • 29-11-2011 1:28pm
    #1
    chamac
    Registered Users, Registered Users 2 Posts: 32 ✭


    Hi All
    I run a small business. I have a commercial mortgage on the property that I pay for myself through my drawings so the premises will be my own some day.
    I live upstairs so the place is 50/50 commercial / private.
    I am on standard variable that is now 7.2% and they tell me that's a full commercial rate.
    Is this rate "fair" or should I try to negotiate something better.


Comments

  • #2
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    Certainly no harm in talking to your lender to try to renegotiate the rate, particularly if all your repayments are up to date. I wouldn't be too hopeful that they would agree to lower your rate but it's certainly worthwhile having the conversation with them.


  • #3
    gigino
    Closed Accounts Posts: 2,350 ✭✭✭gigino


    yes, no harm in talking with them. state your case.


  • #4
    chamac
    Registered Users, Registered Users 2 Posts: 32 ✭chamac


    I will see will they talk. I have a viable business and never missed a payment.
    The place is worth at least four times the mortgage owed.


  • #5
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    chamac wrote: »
    I will see will they talk. I have a viable business and never missed a payment.
    The place is worth at least four times the mortgage owed.


    At 25% loan to value, a proven repayment record and a profitable business it may even be worthwhile to talk to other lenders too. Whilst there is not too many commercial lenders active in the Market you are in a strong position and may be able to source a better deal elsewhere.


  • #6
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    chamac wrote: »
    Hi All
    I run a small business. I have a commercial mortgage on the property that I pay for myself through my drawings so the premises will be my own some day.
    I live upstairs so the place is 50/50 commercial / private.
    I am on standard variable that is now 7.2% and they tell me that's a full commercial rate.
    Is this rate "fair" or should I try to negotiate something better.

    The rate looks over the odds - I'll hazard a guess that your commercial mortgage is with PTSB?

    In any event it would be worth taking to other lenders given the low LTV. If you can afford the mortgage at 7.2%, you have a good chance of refinancing. From the Business Banking end of matters - BofI and Ulster seem to be the only banks willing to consider lending deals at the moment. AIB are doing some business but it's difficult to gauge who they are lending to at the moment and on what terms.


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  • #7
    chamac
    Registered Users, Registered Users 2 Posts: 32 ✭chamac


    stepbar wrote: »
    The rate looks over the odds - I'll hazard a guess that your commercial mortgage is with PTSB?

    In any event it would be worth taking to other lenders given the low LTV. If you can afford the mortgage at 7.2%, you have a good chance of refinancing. From the Business Banking end of matters - BofI and Ulster seem to be the only banks willing to consider lending deals at the moment. AIB are doing some business but it's difficult to gauge who they are lending to at the moment and on what terms.
    It's with PTSB ok.
    Bank of Ireland will talk but want to fix....maybe bad idea just now.


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