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%.
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.
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.
If you let it be known you can arrange commercial mortgages it gives you the option to obtain new clients.
With every commercial mortgage comes the opportunity for associated sales such as key man insurance or property insurance.
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.
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.
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.
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.
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.