Commercial Mortgages, are brokers necessary?

There are an estimated 5.2 million commercial properties with in the UK with the total size of the retail, office and industrial stock presently estimated to be over £610 billion. It may surprise you to find out that 52% of these commercial properties are investment stock. The remainder are obviously owned by owner-occupiers, mostly using a commercial mortgage to pay for them.

It should come as no surprise then that there has been a substantial rise in the number of investors looking to buy commercial properties, despite the confusion caused by the government’s change of heart over the use of commercial property in pension schemes.

With this increased interest in commercial property by investors and business owners alike the role of the commercial mortgage broker has become a more integral part of the process. Since the Financial Services Authority (FSA) took over regulation of residential mortgages in November 2005 over 60% of mortgage brokers claim profits are down.

Commercial mortgage lending is no longer the preserve of the high street banks. In the past the mainstream lenders seemed to cherry pick customers and would show a preference towards existing customers.

Well that has now changed. In a competitive market the advantage passes back to the well informed customer. Because three years audited accounts are no longer a requirement and adverse credit clients are now considered, the choice of commercial mortgage products requires an in depth knowledge of the commercial mortgage market-place.

Do your homework, and make sure that if you are using a commercial mortgage broker he has done his too!

[tags]commercial mortgage broker, commercial mortgage[/tags]

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