There are a number of different avenues available for the funding of a commercial mortgage, and the internet has revolutionised the way in which people shop for the best commercial mortgage deals. The three options are to approach a commercial mortgage lender directly, find a an independent commercial mortgage mortgage broker, or use an intermediary website. Each of these options should be considered when searching for the best commercial mortgage deal in the UK.
A Commercial Mortgage Broker
When trying to find the best commercial mortgage rate through a broker, it is critical to use an experienced and professional mortgage broker who is authorised by the Financial Services Authority. Find out how to check if your broker is FSA-authorised here. A commercial mortgage broker can assist a borrower through all of the phases of the investment process. The services of a commercial mortgage broker include finding the right commercial property, seeking competitive commercial loan rates, preparing the paper work and closing the deal within a specific amount of time. There are several advantages to working with an experienced commercial mortgage broker. One of the biggest advantages is that the broker is able to use their knowledge in order to accelerate the pace of financing the deal on the commercial property. This allows you to focus on running your business. If your commercial property is unusual or specifically designed for a particular type of industry, make sure that you use a broker who is familar with your industry. Someone with expertise in your field will mean that your commercial mortgage application has much more chance of being successful.
A Commercial Mortgage Lender
Your second option for obtaining financing for commercial property is to apply directly to a specialised mortgage lender. Although lenders ensure that brokers promote their products by offering a certain amount of products and deals exclusively to brokers, an advantage of going direct is that you have access to a wide range of loan options. You also have more of an opportunity to get a good deal - lenders tempt in new customers with free valuations and other offers. The obvious downside of approaching lenders directly is that you do not get to see the entire range of products on the market, and consulting a variety of lenders can be time-consuming.
An Intermediary Website
There are a number of 'middle man' websites that are designed to allow a borrower to compare various commercial mortgage deals at one time. Essentially the aim is to introduce you to the most suitable commercial mortgage deals based on your requirements, and depending on the relationships that the website has, the introduction will either be a direct one to the mortgage lender or to a mortgage broker authorised to offer those mortgage deals. This is a great way of comparing like for like mortgage deals, and it is very useful to talk through your options with an experienced broker before proceeding with a commercial mortgage application.
If you would like to speak to a specialist commercial mortgage broker, visit our commercial mortgage page for further details.