Fees involved in borrowing

[onekeano]

Just checking to make sure some proposed fees are reasonable for some short term borrowing arrangements for a development project I will be undertaking. Would appreciate any views on same, borrowings initially will be a facility of 500k.

- Arrangement fee €2k
- Interest rate of 1.5% over the standard
- All legal costs (including banks) to be charged to the borrower

Is the above relatively standard for such an arrangement?

Thanks
Roy

 

[rainyday]

For a start, I'd want to quantify the legal costs up-front, otherwise you're giving them a blank cheque.

 

[demoivre]

Is the above relatively standard for such an arrangement?

Everything is open to negotiation - if you have a firm offer from one Institution go elsewhere and see what they can do for you. You are in a strong position if you already have an offer on the table. Nothing I enjoy more than seeing banks compete for my business ! Ten years ago I paid a 1 % arangement fee on a development loan - I have never paid such a fee since ! One wises up.!
Let us know how you get on.