When you start thinking about new business premises, or expanding your business, you realise you are going to need a commercial mortgage. Your first thought may be to go to your bank, especially if you have always dealt with them in the past. However, like many other people, you may have realised that going to a commercial mortgage broker gives you much more scope and a wider choice.
The only problem is, that if you have always been in the habit of going to your bank, you may not have any idea how to start looking for an independent commercial mortgage broker! Here are some ideas as to how to find one.
1. If you are a member of your local Chamber of Commerce, which you probably are, that is a good place to start making discreet enquiries. You are virtually certain to find people who have recently taken out a commercial mortgage and who will be able to point you towards a good commercial mortgage broker – and steer you away from the less good! Of course that is also an excellent way to find other advice about problems and pitfalls that other people have encountered.
2. Recommendations of colleagues – people in your own or similar line of business who have already taken out a commercial mortgage. Word of mouth recommendation is the most valuable kind. Questions you need to ask might be:
Is the commercial mortgage broker approachable and easy to relate to?
Does the broker have a good overall understanding of business finance – not just property mortgaging?
Is the broker “whole of market”?
Is the broker FSA approved?
Does the broker charge fees or work on commission?
3. One good place you can look is on the web site of the National Association of Commercial Finance Brokers (www.nacfb.org) Here you can fill in your area and the specific type of finance you are looking for, and it will point you to a suitable commercial mortgage broker as near to you as possible.
You can of course also use the Yellow Pages, but this is very time consuming and won’t give you any indication of whether a broker is right for you. Using these methods will help you to find a commercial mortgage broker whom you can trust and who you know can meet your needs.
Please note that the FSA do not regulate commercial loans or commercial mortgages