There are many sources of finance available to the property investor. A commercial broker can find the best commercial mortgage deals, and your broker can be regarded as a business partner essential tothe success of your property business.
Finding a good commercial mortgage broker
There are many commercial mortgage brokers operating in the UK. Like all professionals, some are better than others. Most commercial mortgage products are unregulated which means that borrowers do not have the protection of the Financial Ombudsman and similar authorities should things go wrong.
Though many commercial mortgages are not regulated by the Financial Conduct Authority, a responsible mortgage broker will give fair and transparent advice. The needs of the client take priority over the broker’s own interests, or the lender’s.
Not all mortgage brokers are commercial specialists, some deal mainly with individuals buying their own homes. You need a broker who has business specialists to advise you, as well as a good knowledge of a wide range of lenders. A good broker matches your borrowing needs to the best mortgage deal.
Your broker needs to have experience in all types of commercial property, buy-to-let residential property, office space, warehouses, workshops, mixed-use property and more. You may want to buy land for a car park or for building development, so the broker should be familiar with land deals. Whether your property deal is simple or complex, your broker should be able to match you to the best lender.
New mortgage products are launched regularly, and rules and regulations covering mortgages change. There have been many changes to regulations covering buy-to-let landlords who have had to pay extra stamp duty and adjust to tax changes. Your broker will be up to date with all the changes and can advise you on how they can affect your borrowing facilities and your business plan.
Building a relationship
If you are an investor that wants to build a portfolio of buildings, it helps to use the same mortgage broker for each property purchase. You build a relationship with your broker; a partnership where the broker knows a lot about you, your property portfolio, and your financial circumstances. They can keep track of your mortgages and suggest remortgaging at times when this may be appropriate.
If you find a good property investment, your broker is available to start the loan application process.
Sometimes property deals are time sensitive, and you may need a bridging loan to complete a quick sale. It helps to have a broker that can arrange a bridging loan as well as more long-term commercial mortgages.
Ascot Mortgages is dedicated to finding the best possible mortgage for our clients. Our founders have over 40 years’ experience in mortgages and a customer-focused approach. We believe in creating long-lasting partnerships with our customers, which has resulted in over 83% of our business coming from repeat clients.
Arrange a free consultation with Ascot Mortgages to discuss your property finance needs.