Have your cake and eat it: Shawbrook solves cake shop refinancing

Have your cake and eat it: Shawbrook solves cake shop refinancing




Shawbrook Bank, has helped a couple from South Wales with the refinancing of their cake shop after one of their broker partners.

Lender, Shawbrook Bank, has helped a couple from South Wales with the refinancing of their cake shop after one of their broker partners contacted them.

The husband and wife wished to refinance and raise capital to pay off an existing loan of £58,000 along with using the additional funds to make improvements to their business, which has been running for 25 years.

The loan amount of £63,913 fell slightly outside Shawbrook’s criteria, but a Senior Lending Manager assured the bank that there were possible strategies that could be taken so that the deal would be able to proceed.

The cake shop on the ground floor of the semi-commercial retail property was revealed to have consistent drawings of £7,350, which was enough to cover personal requirements along with the £525 per month rental income from the flat above.

The credit profile of the clients and the business was also A1 and their outgoings were by no means exceeding their incomes, the banks only slight concern was the couple’s age, 66 and 61.

Shawbrook was able to take a pragmatic and flexible view of the case, thanks to a low LTV of 43 per cent and a part-capital repayment which allowed the bank to offer the couple the required £63,913 over a five-year period with 7.5 per cent capital being repaid.

The lender worked closely with its broker partner and so it achieved completion three weeks after the solicitor was instructed.

Sales and Marketing Director of Commercial Mortgages at Shawbrook Bank, Karen Bennett, added: “It may traditionally be the month of diets and detox plans, but if you can’t have your cake and eat it, you can at least read about it.”

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