How to find a Commercial Mortgage broker?Published on 10th November 2017 - Last update on 22nd November 2018
Whether you’re looking to move into your first premises, expand into new markets or improve the quality of your portfolio, the obstacle standing in your way might be the matter of finances. But rather than using your own funds and risking your financial sustainability, you could instead explore an alternative route and apply for a Commercial Mortgage. Commercial Mortgages present you with the means to spread out the potential costs involved in property purchases or release equity stored in your property portfolio, and can last between 3 – 25 years. All you need to do is choose an appropriate commercial mortgage broker. But with so many to choose from, that’s easier said than done, especially if you don’t know what to look for. So if you’re considering the services of a broker, here’s what you need to be asking:
What experience do they have in your sector?
When seeking the services of a commercial mortgage broker, you need to be using someone who has experience or sufficient knowledge of your sector, in regards to property. Every business owner uses property for a specific purpose whether it’s for manufacturing goods, selling stock or even housing tenants. In order to gain the funds that you need, choosing a broker who understands the nature of the investment and what it means for your business is crucial. They need to be able to convince lenders of the benefits it’ll bring to your business, and what returns it may yield on their investment.
What types of Commercial Mortgages do they cover?
Commercial Mortgages can arrive as either Fixed Rate or Variable Rate products. In order to select a product that meets your preference, you must choose a broker that covers both of these solutions. What you choose can have two very different effects on how interest is handled. A Fixed Rate Mortgage has a constant rate of interest throughout the agreement and the repayment scheme. But, a Variable Rate Mortgage can fluctuate according to whether market interest rates rise or fall. This could mean that you’ll be paying more or less interest during certain periods, so being able to choose is paramount.
How many Commercial Mortgage lenders do they work with?
The services of a Commercial Mortgage broker are designed to help you gain an overview of each mortgage product on offer from across a range of different mortgage lenders. As such, the more lenders they’re associated with, the greater your ability to compare products is as a result. Plus, by having an awareness of these products and their price schemes, you can use this knowledge to reduce their service fees and gain a favourable interest rate during negotiations.
How do their past customers rate their services?
Before choosing to use a particular broker, assess the quality of their services among their past clients. You can do this by reading their case studies and online reviews, or see whether they’re mentioned in any online community forums. Although everyone’s experience will be unique to themselves, doing your research can identifying any potential issues and prepare you for how they operate. If there was a breakdown in client-broker relations, try to assess what were the root causes of the problems. If there is a strong pattern of dissatisfaction, it could raise concerns regarding their work ethic and the quality of their services. As such, the more you know about each broker and how they operate, the more prepared you’ll be when making your decision.
How impartial are their services?
Although Commercial Mortgage brokers are meant to be entry points into the alternative finance industry and offer you in-depth insight into what’s on offer, their services and recommendations should always be impartial. This means that they should only be presenting you with Commercial Mortgage products based on whether they’re suitable for business’ goals and current financial situation, not for their own convenience. If you are repeatedly being shown products from the same lender, it could be a sign that they have an arrangement with that lender which may not be to your benefit. In some cases, it could even be that a broker owns a particular lender or vice versa. Therefore, if you suspect such a relationship exists, you could either demand clarification of their position or consider whether or not to continue using their services.
Looking for a Commercial Mortgage for your business?
Managing your property portfolio or seeking to get your business on the property ladder can be a handful, especially whilst addressing the needs of your customers. However, this is where the services of a broker can prove invaluable, giving you an overview of a range of lenders in order to help you source an appropriate product based on your business’ current financial situation.
But, how do you choose a broker who knows the different facets of your sector and can appreciate the value of your goals? Luckily for you, there’s Rangewell.
At Rangewell, we go above and beyond your typical brokerage. We’re an access to business finance specialist working with over 300 business lenders to give you a clear and in-depth insight into what the alternative finance industry has to offer. Free to use and impartial, we’ll also guide you through each stage of the application process. So if you’re looking to acquire property or to open branches all across the UK, apply for a Commercial Mortgage today, or find out more with Rangewell.
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