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10 reasons to try commercial deals

It is estimated that only 15% of commercial mortgages are arranged through brokers compared with around 60% of residential mortgages. There is a huge opportunity for advisers to cover commercial mortgages, and here are 10 reasons why they should.

  • Boost your earnings

  • Commercial mortgages provide an opportunity for brokers to boost their earnings. Loan sizes can be significantly higher than with residential mortgages and commission levels are typically between 0.5% and 1.5%.

  • It’s a growth market
    Traditionally, this market has been dominated by the banks but with the new lenders entering, the proportion of commercial mortgages placed through brokers will continue to rise.

  • Retain your existing clients

  • If you can offer existing clients the opportunity to arrange commercial mortgages you will avoid the risk of them going elsewhere and losing their other business as well.

  • Obtain new clients

  • If you let it be known you can arrange commercial mortgages it gives you the option to obtain new clients.

  • Associated earnings

  • With every commercial mortgage comes the opportunity for associated sales such as key man insurance or property insurance.

  • Other cross-selling opportunities

  • People in business have varied needs including pensions and Inheritance Tax planning. Once you’ve got your client by arranging a commercial mortgage these can provide an excellent opportunity for long-term earnings.

  • Opportunities for referrals

  • The business community in some areas is close-knit and not only provides the opportunity for referral business from your existing clients but also a passport into a networking group.

  • It is unregulated

  • Most commercial mortgages are unregulated, with the exceptions being where clients live in at least 40% of the subject property or where a first charge on their residential property is offered as security.

  • Because you can

  • Many brokers shy away from commercial business because they believe it to be a specialist area. But specialist commercial brokers can help you to place the business.

  • Because it’s fun
    Commercial mortgages can bring variety to working life. They are interesting to assess and it is exciting to arrange funding for a pier, a castle or the fishing rights on a river – all of which are cases we have dealt with.

    Now is the time to go out and find yourself some commercial mortgage enquiries.

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