There are several advantages to using a mortgage broker to find the best commercial mortgage loan deals.
Zina Kumok writing forInvestopedia in November 2017, looked at the reasons for using a broker. Although she writes for an American audience, her comments are equally valid for UK borrowers.
Kumok says that borrowers can approach lenders directly, but each lender has to be approached individually. This takes a lot of time, and even if the borrower finds a good deal, they cannot be sure that it is the best one available.
A broker will be able to find a number of loan quotes from various lenders. These can be presented to the borrower at the same time, to make the process of accessing competing offers easier. They can also work with the borrower on the loan application process and provide advice on the mortgage application documentation required.
According to Kumok, the one case where going directly to a lender may be worthwhile is when the borrower has several large business accounts with a bank. They may treat the lender as a valued loyal customer and provide preferential loan rates, but these may still not be lower than a broker can source.
Brokers used to be loosely regulated and some were more concerned with getting the most expensive loans because of their higher commissions. In Britain, commercial brokers are regulated by the Financial Conduct Authority, which makes sure that brokers work for the best interests of their clients.