Why should you use a commercial mortgage broker rather than a bank, when looking for your commercial mortgage?
To answer this question, here’s another: What are your main priorities when looking for a commercial mortgage? For most people, these would include:
- Specialist knowledge
- Saving money
- Speed of service and
- Selection of lenders
There is little doubt that a commercial mortgage broker can do better than a bank on all four of these.
Many people start off by approaching their bank if they need a commercial mortgage. However, commercial mortgages aren’t straightforward products like residential mortgages – they are much more complex. In order to identify your requirements and how they can be met, there has to be an understanding of the nature of your business, your business history and your projected business plans. The people at the bank aren’t specialists in commercial mortgages – they are specialists in banking! They will be friendly and sympathetic, especially if you are their customer, but they won’t have the expertise to work out exactly what you need. If you go to a specialist commercial mortgage broker, you’ll find someone who is equally friendly and sympathetic, but who also has the expertise to identify your requirements and how they can be met.
A commercial mortgage can be extremely high-cost and one of the biggest items – if not THE biggest – in your business expenditure. So the last thing you want is to pay more than necessary for it. Even a fraction of a percentage point can make a difference of thousands of pounds. However, a bank has no incentive to offer you a competitive deal. In fact, the bank worker has every incentive to sell you a product that makes as much profit as possible for the bank. On the other hand, the commercial mortgage broker can scan the whole market to find you the cheapest deal. In fact, the broker may well be able to get you that bank’s own product at a cheaper rate than you could get it from that same bank!
Speed of service
Because the commercial mortgage broker is a specialist and an expert, he/she can save you a huge amount of time. The broker can scan the market to find all the possible lenders in your category, and once you have selected the best for your needs, can identify the acceptance criteria that you are most likely to be able to meet. The application process can be enormously time-consuming, but the broker can help you complete it in the shortest possible time since it’s something he or she does all the time!
Selection of lenders
You can’t have failed to notice that finance and mortgages of all kinds are in very short supply just now. So it makes sense to find the people who can provide the widest selection. If you go to the bank, they are obliged to offer you the bank’s own products. So you don’t get any chance to compare price, or the suitability of the products for your needs in any other respect. An independent commercial mortgage broker can scan the whole market. This may not be a very large number at the present time, but at least you know that you are getting the full selection.
As a business person you know better than anyone else what your priorities are. Your commercial mortgage is one of the biggest projects you will undertake. You owe it to yourself and your business to find the best prospects.