Finding the best commercial mortgage is not easy, which is why it helps to use a commercial mortgage broker. There are many reasons why a mortgage broker is the best place to go to if you want a commercial mortgage.
An advisor at a commercial mortgage broker will discuss your borrowing requirements. They need to know the type of property that you want to purchase – commercial, semi-commercial (a building with a mixture of commercial and residential use), or buy-to-let residential accommodation.
Depending on the type of property that you intend to purchase, the broker may recommend a lender that specialises in particular property areas.
If you are purchasing a property at an auction, then the money for the purchase is usually required within 28 days after a successful bid. It may take too long to finalise the commercial mortgage within that time period, which is why a broker should be able to arrange a short-term bridging loan to quickly complete the sale, and this can be repaid as soon as the commercial mortgage funds are ready.
Some lenders specialise in auction property finance and a broker could recommend one if appropriate.
The buy-to-let property sector has undergone some major changes recently. There have been increases in stamp duty and revisions to the mortgage tax relief system. The affordability rules that lenders use to assess a buy-to-let commercial mortgage application have become stricter. A mortgage broker can help you navigate the new regulations.
Negotiating a deal
Unlike a standard residential mortgage, there are no fixed interest rates for commercial mortgages. Each loan application is assessed on an individual basis and an interest rate set according to the perceived risk of the loan. An experienced broker is likely to be able to negotiate a good interest rate for you.
After accepting a deal
After you have initially accepted a deal, a commercial mortgage broker can still assist you. You will need a solicitor for the legal work and an accountant to audit your business accounts to prove that your business can afford the mortgage repayments. The broker can work with these professionals to make sure the process goes as smoothly as possible.
The best brokers have access to a wide range of mortgage providers, not just a few. The skill of a good broker is to match their clients’ needs with the right lenders and mortgage products, ensuring the best possible deal for everyone.
A long-term relationship
If you intend to build up a property portfolio, then once you have found a good and reliable broker, use them for all your property transactions that need financing. Regard your broker as being part of your team with a vital role in the development of your property business.
At Ascot Mortgages, we are expert commercial mortgage brokers who have helped many individuals and business successfully apply. For further help and advice, contact our team today to discuss your borrowing requirements.