Can anyone recommend a bank?

by Readers Question

11:04 AM, 14th December 2016
About 2 years ago

Can anyone recommend a bank?

Make Text Bigger
Can anyone recommend a bank?

Can anyone recommend any particular bank that is supportive of limited companies in the property business? I’m just setting up a Ltd Co for property renovation and am looking for a bank to use.bank

I’ve used HSBC for business banking in the past but found them particularly inflexible so moved to Natwest who were ok but not fantastic.

Ideally I’d like a bank that ‘gets’ property development or at least shows a degree of sympathy to new companies (a commercial version of First Direct would be ideal…)

Any feedback gratefully accepted.

Paul



Comments

Neil Patterson

11:08 AM, 14th December 2016
About 2 years ago

Hi Paul,

It is highly unlikely that one high street bank will have all the criteria, credit appetite and products best suited to your current and future secured lending requirements.

That is why I would personally stay with one company that meets your basic banking needs and then spread your borrowing with other lenders if needs be for your business.

Neil Patterson

11:09 AM, 14th December 2016
About 2 years ago

PS We use Barclays as our business bankers, but you can guarantee if you recommend a particular bank to someone it will go horribly wrong.

Ken Johns

11:43 AM, 14th December 2016
About 2 years ago

I have used Allied Irish (AIB) for many years and have always used them for property purchase, both renovation and investment. You will pay a little more (4 over base), but they even let me purchase during the recession. Their only downside is that they do not have many branches, but in this day and age do we need many. My branch is in Birmingham and I live 270 miles away, but no problem.

denis knockton

12:34 PM, 14th December 2016
About 2 years ago

Metro Bank is very keen to expand their buy to let lending. It's worth speaking to them. They were very quick with my company borrowing.

Paul Temple

12:43 PM, 14th December 2016
About 2 years ago

Reply to the comment left by "Neil Patterson" at "14/12/2016 - 11:08":

Neil,
Thanks for the response. To be honest I hadn't been thinking too much about finance in the early stages as the initial property purchase will be from our savings but it will undoubtedly start to become more important as we move forward.

When we do get to that point I do like the idea of separating out day to day banking from finance as that should allow greater flexibility of choice. Thanks.

(PS Your comment about recommendations noted - promise not to hold you to blame!)

Graham Bowcock

13:09 PM, 14th December 2016
About 2 years ago

Dear Paul

I am finding that the high street banks have little appetite for property development at the moment. You may find that a broker would serve you well in finding somebody to fund you; they will have the knowledge based on your specific circumstances and may save you unnecessarily approaching banks who will not be able to help you. Different banks have different criteria; after years with very successful borrowing (to my various limited companies) from Barclays they are now lukewarm, yet Lloyds lent readily to me at a good rate for a project earlier this year. I have just got two applications in with Aldermore (for my limited company) who seem to be very straightforward to deal with and keen to do business, but it is early days so it remains to be seen how we will finish up.

As a new business there is no doubt you will find it tough. Presumably you are aware that the banks will insist on personal guarantees and maybe even debentures. Banks seem to like security three times over!

Good luck

graham

Paul Temple

14:57 PM, 14th December 2016
About 2 years ago

Graham,
Thanks for your input. From my own company experience in the past I'm well aware of the maxim that 'a bank will only lend to you when you don't need the money' - which was another reason why our initial activity is being planned without recourse to lending. Hopefully, by the time we do have a need we will have a bit of history/experience/evidence behind us to make things (slightly) easier.

And thanks for the mention of Aldermore - may have to expand my search...

Robert Grant

21:41 PM, 14th December 2016
About 2 years ago

I was with HSBC for many years but they lost there appetite for property and unilaterally doubled my interest rate. I moved to Handelsbanken who have been superb. The manager makes the decisions rather than everything going up to head office. I also use others as well such as Aldermore who I found better than Shawbrook and for personal deals rather than Ltd company use anyone such as Birmingham Midshires or Paragon.

Kevin McLandlord

13:24 PM, 16th December 2016
About 2 years ago

I'm with HSBC Business Banking using their free 18 month rate and will be looking to switch after.

Whilst I only have have property in the business with rental income flowing through it, my plan is to invest/put away/save/move money out of here to make it work harder.

I understand that everything has to be left in the company name when transferring funds from the business bank, but unsure how to go about it.

Is it one for my accountant?

Mark Alexander

8:24 AM, 17th December 2016
About 2 years ago

I'd suggest opening an account with one of the challenger banks.

Somebody has suggested Metro, also consider Shawbrook, Paragon and Aldermore. All of these have an appetite for property and if a relationship deal based on commercial underwriting is ever required then they could prove very useful.

If you are particularly high net worth then look at Coutts, Handlesbanken and Arbuthnot Latham.
.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

And the landlord vote goes to - ?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More