A commercial mortgage broker is there to help you arrange a mortgage or second charge loan secured on commercial property, they will also have access to property development finance and bridging loans.
A good broker will offer a fast and flexible service with free advice. Most commercial mortgage brokers will try to charge a broker fee, however this should be negotiable. What you are effectively paying for is access to lenders who are not otherwise available to the general public.
Your broker should definitely be working with your interests in mind. Almost goes without saying that they should have access to the entire market, from high-street lenders to specialist private bankers. The deal they recommend should be the same irrespective of the commissions they get from lenders.
Whatever type of business you are running a commercial mortgage broker can help you to find the right commercial mortgage including:
- Commercial mortgages for pubs, restaurants and night-clubs
- Hotels and Guesthouses and Bed & Breakfasts.
- Business loans for owner occupiers.
- Residential Care and Nursing Homes
- Commercial Mortgages for investment property.
A commercial mortgage broker should be independent and will help you search the whole commercial finance market to seek out the most suitable finance package for your business.
A bad credit history should not necessarily mean that you can not get finance but it will certainly make things more challenging for your broker, ironically this means that you may end up paying more by way of fees and charges. If you have had problems getting any sort of finance in the past then you can expect more problems with getting a commercial mortgage.
Commercial mortgages and second charge commercial loans can be arranged for just about any type of business, whether you are purchasing or re-mortgaging. The mortgages are secured against commercial property and the loan is repaid by way of some form of business activity.
The commercial mortgage marketplace has undergone a transformation over the last few years and there is now a vast range of commercial mortgage brokers and lenders to choose from.
It is worth bearing in mind that a lot of residential brokers “jumped ship” to commercial work when the recession hit. This means that there are brokers advertising who perhaps are not a specialist as they claim to be. Shop around and ask lots of questions of your commercial finance broker.
There are a number of reasons why a business or individual will need a commercial mortgage:
- To purchase a commercial property or refinance existing premises
- Consolidate existing debts or expand a business.
- Carry out improvements to a commercial property.
- Set up a new business – detailed business plans not always required.
- An investor purchasing commercial or semi commercial property.
Whatever you need funding for you should be able to find a commercial mortgage. Remember that CCJ’s, arrears or lack of accounts don’t have to stop you getting a commercial mortgage but they will mean that you might have to may more for your mortgage.
Using a commercial mortgage broker you will have access to years of experience in providing commercial mortgages. A quote should cost nothing and you are under no obligation or pressure to proceed with a commercial mortgage, so shop around.