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BUSINESS OWNER SAVES £24K PER ANNUM BY PURCHASING BUSINESS PREMISES

Objective

Our introducers’ client was given the opportunity to purchase their business premises having rented them for a number years.  The premises, used as a printing business, were offered for sale at £800k and the client required a 70% LTV mortgage.

Obstacle

The client had already been provided with terms from a high street bank, just prior to the pandemic.  During the lockdown period, the client took out a CBILS loan with the same bank.  When they tried to proceed with the mortgage, the client was informed that the bank would no longer be able to sanction the deal due to the client taking the CBILS loan.  At the time of applying for the CBILS loan, the client was not advised that it would cause an issue.

The lender we used were prepared to accept that the client had taken out a CBILS loan but were required to take it into account for affordability purposes.

Outcome

Brightstar were able to obtain the required funds at a rate of 5.2% +BBR.

On a capital repayment basis, the annual mortgage payments totalled £46k.  The client had been paying £70k per annum on rent so their annual saving was £24k plus they had the benefit of potential future appreciation in the property.

 

FOR INTERMEDIARIES ONLY AND NOT INTENDED FOR THE GENERAL PUBLIC

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