Commercial Mortgage Broker
Commercial mortgages are quite different from mortgages available on the market to those available for house buyers. Often called ‘commercial property mortgages’ or ‘commercial property loans,’ commercial mortgages are required to purchase a commercial property. Many properties need a commercial mortgage, such as office buildings, warehouses, shops, care homes, hotels, etc. It is often quite tricky for commercial property landlords to navigate the world of commercial mortgages.
Although you can find commercial mortgages offered by some high street lenders, this is usually just the tip of the iceberg. Many centralised lenders and private banks don’t even consider applications made directly from borrowers, which is why it is so essential to hire the services of a commercial mortgage broker. If you don’t use a broker, you are likely to miss out on competitive business mortgage rates and deals, as well as the significant industry expertise and advice you can expect to receive from a reputable broker.
Even if you have acquired a mortgage before, getting a commercial mortgage is quite different. They are usually available for clients looking to borrow over £25,000, and lenders are generally looking to see a loan to value ratio of no higher than 70%, and commercial mortgages are usually available for 3 to 25 years. In addition to this, there are many other options, such as bridging loans, that could be most suitable for your commercial property. Given the complexity of the commercial mortgage market and the higher risk associated with borrowing for a commercial venture, it’s good practice to consult a mortgage broker when you begin the process of purchasing a commercial property, be it for the first time or even if you are a seasoned property investor.
Given the fact that you usually pay a higher interest rate on commercial mortgages, as they are seen as a higher risk to lenders, you must secure a mortgage that is cost-effective for your business. If you search one of the many mortgage comparison sites online, the deals presented aren’t always as they first appear. If you employ the services of a mortgage broker to help you acquire a commercial mortgage, they will help you budget accordingly, factoring in things such as overall borrowing costs, early repayment fees, administration costs, etc., that you may not consider from an online search.
Moreover, due to the relationships that brokers have established with lenders, they can often acquire discounts and special deals to accompany your mortgage. For example, brokers can negotiate reduced legal fees and free valuations, amongst other things; discounts you could not access yourself if you were to approach a lender directly to apply for a commercial mortgage. Considering the importance of getting the right mortgage for your commercial property, it’s a good idea to consult a broker or advisor so you can identify your priorities and avoid mortgages that are not suitable for your business.
If you’re looking for a commercial mortgage in Wolverhampton, Stafford, Cannock, Walsall, Birmingham, or London, get in touch with us now, and we would be delighted to support you to buy your first home.