Of all the different kinds of finance you might go for, a commercial mortgage is about the most complex. There are so many different factors to consider. Even in these tough times, it is still possible to get a commercial mortgage, provided you make a good case – but of course it is making the case that can be tricky! So it really makes no sense to try to do without a commercial mortgage broker, unless you are exceptionally experienced. And even if you are exceptionally experienced, you will probably find the broker can get you a better deal.
So why is a commercial mortgage so tricky?
• In the first place, more than any other type of mortgage, a commercial mortgage is an individualised product. Other types such as residential mortgages are more standardised, so it’s more akin to choosing one from the shelf. A commercial mortgage is likely to be tailored to your individual circumstances – your industry sector, your business history and your credit history, as well as the specific characteristics of the property itself. So the ability of the commercial mortgage broker to negotiate a rate on your behalf is really indispensable. The broker knows what is achievable in a way you probably can’t, so is able to push for it.
• Although there may be fewer commercial mortgages available at the moment, there is a wide range of potential lenders. As well as the banks and the ordinary building societies, the products can be obtained from commercial building societies and commercial asset lenders. It would be extremely confusing for you to know where to start looking. A commercial mortgage broker will know which is the appropriate commercial lender to approach, for the specific product you require.
• Obviously, conditions for obtaining any kind of finance at the moment are extremely tough. But the fact is, there are still commercial lenders out there, who will lend to you if they are convinced of the merits of your individual case. It is much easier for a commercial mortgage broker to make the case on your behalf, than it would be for you to try and approach them yourself. The broker will know exactly what they are looking for – e.g. loan-to-value required, your credit history, your business track record, the profit forecast. Usually you find that a commercial mortgage broker will “talk the same language” as the lender, so they are more likely to take the broker seriously.
Obtaining a commercial mortgage isn’t like getting a residential mortgage. It’s a lot more challenging and complicated, even at the best of times. In the current situation, you really need all the help you can get. A commercial mortgage broker specialises in providing just this kind of help – so it makes sense to use it!