According to InterBay, brokers can expect to pocket the same proc fee for one deal as it would take them to earn for eight residential deals.
InterBay added that aside from the financial rewards, offering commercial mortgages to an existing client base will mean adding an extra string to the business bow. There are currently 22 million people employed by UK SMEs and the figure has been steadily growing over the past few years. Most intermediaries will have these small business owners already on their books as residential customers, representing a good opportunity to reach out to a large customer group who need financing for their business premises.
Colin Bell, operations director at InterBay, commented: “In the UK today, there is a genuine need for intermediaries to help borrowers source their commercial mortgage. This is true for borrowers seeking to purchase or refinance their business premises. But it is also true for the mass of small business owners who currently lease their business premises because they are not aware that they can borrow money to purchase premises.”
Intermediaries with experience of residential mortgages are in a perfect position to work with commercial mortgage enquiries. With a little training and support from a good commercial mortgage lender they can soon expand their business and start reaping the rewards.
Bell continued: “Intermediaries are often put off taking on commercial mortgage business due to some common misconceptions about the length of time and effort they take to process and complete. With such high financial returns at stake, along with the added benefits of offering a multi-faceted service to clients, what broker can afford to ignore the opportunities available to them? Also, if they do not undertake the commercial mortgage another broker will, and they could lose the client for good.”
