The UK is one of the most popular places to invest in commercial property. In a good market, leasing a commercial property can lead to a stable rental income and considerable capital gains. And if you own a company, purchasing a commercial property as your business premises can be a cost-effective move that offers more flexibility as well as the potential for rental income and capital gains.
Is it easy to get a commercial mortgage in the UK? Whether you’re able to get a commercial mortgage or not depends on your situation and project, but finding a good commercial mortgage broker may help you get a deal you’re happy with. In this guide, we explain whether it’s essential to use a commercial mortgage broker, what the benefits are and what to look for when choosing your mortgage broker.
Do I Have to Use a Mortgage Broker for Commercial Property?
You technically don’t have to use a mortgage broker to raise commercial finance as some mainstream lenders will accept direct applications. However, there are many commercial finance lenders that only accept applications through certain mortgage brokers such as ourselves. Approaching lenders on your own is time-consuming and it’s unlikely you’ll have anywhere near the reach of a commercial mortgage broker, which means you may miss out on a lower rate. There are many well-known benefits of using a mortgage broker, and these are somewhat amplified when it comes to buying commercial property, so let’s look into these benefits further in the next section.
Why Should I Use a Commercial Mortgage Broker?
As we just alluded to, one of the key benefits of using a commercial mortgage broker is to ensure you have access to a range of deals from across the market instead of only approaching a few mainstream lenders. Not only can mortgage brokers search across the market quickly and easily, but some brokers, such as ourselves, also have access to exclusive deals. Put simply, a commercial mortgage broker may be able to save you money by securing a better rate for you.
A mortgage broker will also be able to assess your situation and use their knowledge of lenders’ criteria to identify deals you’re likely to be accepted for. This is important because if you’re rejected by a lender it could damage your credit score.
Commercial mortgage lenders may also dive deeper into your proposal than with a regular residential mortgage, and they often use a more bespoke approach when deciding whether to lend to you and at what rate. A specialist commercial mortgage broker can help you present your proposal and structure your application in an appropriate way to increase your chances of being accepted.
What Should I Look For in a Commercial Mortgage Broker?
Not all mortgage advisors are made equal. We’ve listed and explained some of the key things to look for when searching for a good commercial mortgage broker.
Number of Lenders
Some mortgage brokers are affiliated with a select pool of lenders and some may even work with just one lender. We recommend looking for a commercial mortgage broker like ourselves, who has access to a comprehensive range of products and lenders from across the market, including some exclusive deals.
Real Advisor, Real Office
There’s nothing more reassuring than knowing you can pop into our office and speak to us in person if you ever need to. We do conduct a large amount of business remotely via phone or video call for customers who prefer it that way, but you’re always welcome to visit us in person if you wish.
Paraplanners
Applying for and securing a mortgage can take time and there are often hurdles to jump along the way. Unlike some mortgage brokerages, we have a team of paraplanners dedicated to completing admin quickly, keeping you updated, and liaising with your estate agents, lenders, and solicitors to ensure your mortgage goes as smoothly as possible.
CeMAP Qualified
The ‘Certificate in Mortgage Advice and Practice’, or CeMAP, is one of the most well-respected qualifications in the industry. It gives advisors the knowledge and skill to offer the right advice regardless of the scenario, and it’s fully recognised by the Financial Conduct Authority. All our advisors are CeMAP qualified and our team has been trusted by our local community for over 30 years!
The Bottom Line
The benefits of using a mortgage broker are well known, with the majority of residential mortgages being arranged with the help of a professional. When looking to apply for a commercial mortgage, it’s arguably even more important to seek specialist advice. An experienced commercial mortgage broker could save you money by finding you a rate or lender you would otherwise have been unaware of, and he or she will understand how to structure your proposal and application to increase your chances of being accepted. When choosing a commercial mortgage broker, we recommend cross-checking them against the points above – namely, how many lenders and deals they have access to, whether you can speak to them in person at a real office or not, whether they employ paraplanners to help with the application or not, and whether their advisors are CeMAP qualified. We tick all these boxes, so feel free to get in touch with us to discuss your commercial mortgage needs.
At Michael Usher Mortgage Services, we’ve been helping our local community for over 30 years! We offer a comprehensive range of products from across the market, including specialist deals that aren’t available directly from lenders. We’ll find a deal that suits your needs, guide you through the process, and liaise with your lender, estate agent and solicitor to ensure your application goes smoothly. We can also help to protect your mortgage with our FREE Insurance Service.
Talk to one of our friendly mortgage advisors for free to get going quickly. Our head office is on Frimley High Street, but we can also help you remotely via phone or video call if you’d prefer. We look forward to chatting with you!
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Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The precise amount will
depend on your circumstances but will be agreed with you before
proceeding.
