mortgage broker

Should I use a Commercial Mortgage Broker?

During the course of business, there will come a time when you need to raise funds for business expansion, or to meet financial obligations. That is the time when most business owners turn to commercial mortgage.

Whether you are applying for commercial mortgage for the first time or the n-th time, the process and paper work can be taxing. There are two choices. Either you can do all the documentation by yourself or hand over the work to a professional commercial mortgage broker.

This article explores the benefits of hiring a professional broker as opposed to doing the task yourself.

mortgage broker

Broker – A Helping Hand!

Apart from savings time, a commercial mortgage broker can get the best interest rates, and get things done quickly. Although you have to pay a fee for the broker for services, the benefit and savings outweigh the fees.

Surprisingly, a majority (60-70%) of business owners in UK still pride in doing the task by themselves. Sadly, they are not realizing the effort and the time it takes to do the paperwork. In fact, it takes away considerable time out of their hectic business hours while hunting for the best rates, arranging the collaterals and looking into other nitty-gritties of loan approval.

In fact, most business owner can save or get better deals if they leave the task to experts.

Moreover, from practical experience, we know that it is easy for lenders to deal with brokers than to coordinate with multiple people. The fact is a commercial mortgage broker acts as a middle man between you and the borrower. Apart from that, brokers will do their best to provide quick service and fetch a good deal for you.

Hiring a commercial mortgage broker doesn’t mean you don’t study the different aspects of the loan. All the information you pick on the lending rate and repayment time, only help in striking a better bargain with the lender.

You can check various websites to learn about the current lending rates in UK and understand the current interest trends. Going through those fact hubs help you negotiate better and procure the right deal.

There are different terms that lenders use. By reading up for a while, you will get familiar with them. If there is too much technical jargon you find difficult, then a broker can always break it down for you.

So, what’s the benefit of hiring a commercial mortgage broker? Here are a few points in favour of hiring a broker, who can help you get the best interest rate and payment plan.

Save time and Money

If you don’t have sufficient time to call every lender in town and understand their lending program, then you need someone to do the investigation for you. When you are directly dealing with a lender to secure a loan, they will be only looking for their benefit. On the other hand, a broker will go the distance.

Apart from time saving and convenience, you can get free advice on the trends. They will also suggest the best time to apply, and the market trends to follow.

Wider choice & pick the best offer

When you deal with a broker or an agent dealing with one bank, then the chances of getting the best deal is relatively less.

Most experienced brokers have a list of lenders with whom they have close relationships. As a result, they have a broader range of loan options to choose from. Not only that; as a borrower, there are chances of getting a loan approved even if you have problems with your credit history.

You can ask your broker to collect all the details, and present a comparative study of the choices: the tax implications, tenure, and monthly commitment towards mortgage costs.

Fewer Complications – Brokers are professionally Trained

Brokers have been in business for a long time. They have the knowledge on the latest norms, rules and regulations. If you are a first-time lender, you won’t be familiar with the kind of questions to ask and negotiating the best rate.

Besides, there are chances that lenders will utilize your ignorance to sell a plan that is beneficial for their business. They will state the repayments associated with the mortgage, the terms the mortgage is taken out over and hidden costs among other things. In most cases, the terms and conditions will come alongside the quote for the mortgage, and understanding them is essential.

An experienced mortgage broker will collect the quotes from different sources and get you the best offer as per the market. Using their knowledge, they will put together a realistic picture for you. Besides, they will patiently explain the implication of each deal and answer all your queries.

Save time & complications during submission

Once you submit the personal and business details to your broker, the person will use the information to apply for loans with multiple vendors. Just imagine, if you had to deal with them separately! That’s a lot of time filling the forms online and offline.

Ask for referral

Ensure that you do your homework before you hire a broker. It’s important to check for broker credential, feedback, and experience in the field. Find out if the person is licensed by the government. Before you hire one, ask to see the license. If you know a friend or business partner, ask for recommendation. Someone from your professional network must have gone through mortgage. Ask for their recommendations and that saves the task of finding one by yourself.


It’s clear that commercial mortgage is a lot more complex than residential loans. There is more paperwork, scrutiny, and verification. The amount involved too is much higher than required for residential funding.

Considering all these aspects, it’s advisable to take the responsibility off your shoulders and hire an experienced agent.


Author Bio:-

Matt Davis a partner at Empire commercial Finance, a firm specializing in Business Mortgages. seeking to serve client of UK with ease.  A company with expert professional  commercial mortgage brokers London most independent  business funding solutions

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