There are many commercial mortgage lenders competing for business. This has kept interest rates low and caused some lenders to offer special deals to attract borrowers.
Some lenders are offering reductions on valuation fees and contributions to legal fees as incentives for new borrowers. Others are increasing their maximum loan to value to allow borrowers to apply for larger loans.
Lenders can compete by offering low interest rates, whilst others concentrate on the speed and quality of their service.
Lenders are increasingly using technology to speed up the loan process. Cloud based apps can monitor the mortgage application process and reduce the amount of paperwork needed. Humans still make the decisions on providing loans, but once a firm loan offer has been accepted, technology can speed up the date when funds are available.
In the buy to let commercial mortgage market, some lenders have introduced income-related loans. Many lenders look only at the rent levels when considering a loan application to buy rented property. Income related loans look at the total income of the landlord as well as rental levels. Landlords that are turned down for rent assessed loans may obtain a mortgage if they have other income.
Borrowers can be confused by the wide range of commercial mortgage offers available. A mortgage broker is the key to finding the best deals for borrowers. A mortgage broker has access to a wide range of lenders and has the skill to match an individual borrower to the best commercial mortgage deal suitable for their individual requirements.