Business loan - missed payments


D

Daytona

My self employed friend has missed some interest payments on a
commercial loan with Natwest and has been transferred to their
Specialised Relationship department who apparently deal with their
errant customers. Having sold one of her properties, her loan to value
is now about 25% but to renew her loan for a year she has been hit by
a 3% arrangement fee which all but nullifys the reduced interest bill
from paying off the mortage on the property and means that they are
now applying pressure again. What are these arrangement fees for ?

What is the attitude of these departments dealing with customers in
trouble ?
 
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P

Peter Saxton

My self employed friend has missed some interest payments on a
commercial loan with Natwest and has been transferred to their
Specialised Relationship department who apparently deal with their
errant customers. Having sold one of her properties, her loan to value
is now about 25% but to renew her loan for a year she has been hit by
a 3% arrangement fee which all but nullifys the reduced interest bill
from paying off the mortage on the property and means that they are
now applying pressure again. What are these arrangement fees for ?
To make money - but they will say it's to judge the risk.
What is the attitude of these departments dealing with customers in
trouble ?
I'm not sure but I can't see how the loan would be much of a risk.
It's just a bureaucracy.
 
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M

Mike Lewis

Daytona said:
My self employed friend has missed some interest payments on a
commercial loan with Natwest and has been transferred to their
Specialised Relationship department who apparently deal with their
errant customers. Having sold one of her properties, her loan to value
is now about 25% but to renew her loan for a year she has been hit by
a 3% arrangement fee which all but nullifys the reduced interest bill
from paying off the mortage on the property and means that they are
now applying pressure again. What are these arrangement fees for ?

What is the attitude of these departments dealing with customers in
trouble ?
To get as much money out of them as they can once they have identified them
as customers they no longer want.
 

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