Searching For The Commercial Lender That Meets Your Requirements

In a market swamped by commercial lenders offering a wide range of deals, finding the right offer can often be a confusing and bewildering experience for the first time borrower. There are commercial mortgages for a variety of different purposes and the trick is to find the right deal but also the right lender.

More importantly though, you should not find a commercial lender then hang on to dear life, finding the right one for you should be equally important. By the finding the right lender, one who might have experience dealing in your businesses sector for example, could lead to a better mortgage deal that is tailored to you needs.

Speak to a mortgage adviser: A mortgage adviser is impartial party who are totally independent of you and the lender. They are paid to help you to find the best commercial mortgage deal for you, and do not have any ties to the lender. This is often a safe route as mortgage advisers and brokers know the industry and the lenders well so can direct you.

The cost of borrowing is also a crucial consideration. A broker can access rates that are not normally available on the high street to borrowers. Plenty of mortgage brokers are specialists in specific niche areas of commercial mortgages. If you can find a broker who is specialises in your industry, they may well be better equipped than a high street lender to guide you towards the best deal.

Finding the right loan can also be very time consuming, and so using the in depth knowledge of your adviser or broker can be beneficial as they will probably know which lender will best suit your needs without having to look through thousands of products. You don't always have to pay the broker up front either - they can often be paid their commission from the lender directly.

One important factor to consider is whether your mortgage broker is independent. Some brokers are tied to one specific lender whilst others can access commercial mortgages from throughout the UK market.

Approaching Lenders Directly: It is possible to research the market and apply for a commercial loan directly, however this may be time consuming and you may not have access to some of the deals available, so it is advisable if possible to get advice from a specialist.

There is always the option of using the internet as well. Today any lender who wants to survive in the market place must use the internet in order to reach its market. Even for potential buyers who just want to do their homework, the internet is a great place to shop around, you don't have to commit yourself to anything whilst online, but you can at least find out what sorts of deals are available. Remember to do your homework thoroughly, if a deal looks too good to be true, it normally means it isn't true. If you are unsure about a lender, Google their name along with the word 'scam' and see what come up.

Some people may not relish the idea of arranging something so fundamental to their business affairs online and may wish to see an advisor personally. Once again, popping into your bank for a chat with a business advisor is a good place to start. At least then you can see the lending that is on offer from your own bank.

Whatever you do, it is very important that you select the right lender as their contracts can vary widely and as commercial property and commercial mortgages is such a specialist area, it is essential that you get all of your facts before deciding on the lender that you want to go with.


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Timothy Frodsham writes for Just Commercial Mortgages the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news.