With so many commercial mortgages in the market it can be tough to find the right lender for you. There are hundreds of commercial products on the market for dozens of different commercial needs and so it is important that you find a lender that can offer solutions to your specific requirements.
As well as finding the right deal for you, it’s crucial that you find the right commercial lender. You want someone who can tailor a loan to your needs but also someone who understands the specific type of business you are in. You also want to build up a good rapport and benefit from a good interest rate. Our guide will help you understand how to find the right commercial lender for your business.
An appointment with a mortgage broker: Going to the high street or better known lenders can be the worst course of action, even for advice. Brokers based with these companies will be pushing their organisations products, so seeking the advice and services of an independent broker can be the wisest move. They can give whole of market advice and be impartial, looking to create that more tailored option, they should also be with you through the whole process until completion, establishing trust and a relationship you won’t get on the high street.
Small Businesses can be living on the edge at the best of times, so getting the balance of commercial lending right is essential to keep costs down and profits healthy. A mortgage broker can have a wealth of experience you require, many specialise in certain sectors or industries so they know how to get the best commercial mortgage and what it will take.
Rather than you spending hours searching all the mortgage providers in the market, a mortgage broker can save time by doing the research for you. Their market knowledge and expertise means that they know which commercial mortgage lenders will be interested in helping you with the finance that you need. Bear in mind that some brokers will charge a fee for their services whilst others will take a payment from the mortgage lender.
Make sure that the broker is independent and that he or she has no contractual ties to the lender, impartial advice in this field is essential. Your broker should have access to a wide range of commercial loans across the market and should not be tied to one specific lender.
Do it yourself: It is always possible to arrange the loan on your own, having a broker is not compulsory. The first port of call should probably be your own bank, if you have assets with them already, they might be more inclined to offer you a good deal, banks like to keep at least some of their customers happy.
If the High St or the yellow pages are of no help, heading online opens up all kind of doors for you, especially research. Reading advice articles on commercial mortgages can be a good way of finding the right lender or broker, just look for the author and where they come from and there should be links to their webpage. Read as much as you can so you feel comfortable and know what the broker or lender is talking about and you are well armed with enough knowledge.
This next bit is going to sound contradictory, but if you really don’t have a choice or are stuck on where to start/don’t know how to find and independent broker then head to a High St broker for information and preliminary advice. They can give you a broad spectrum view of the market, just don’t get sucked in by their offers!
Commercial mortgages are not just about finding the right loan; they are also about finding the right lender. You may hold your commercial mortgage for many years and so making the right decision at the outset could be crucial to the success of your business.
Howard O’Gollegos writes for Just Commercial Mortgages the UK’s No1 site for the latest commercial mortgage rates and commercial property finance news.
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