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Growing business

There has been an explosion of interest in the commercial mortgage market among brokers so it’s time to grab a piece of the action, says Andy Young

In recent years, huge changes in the commercial mortgage market have occ-urred, creating exciting opportunities for lenders and brokers to establish a new income source or develop an existing one.

High street banks such as Barclays, NatWest, HSBC and Lloyds TSB have until recently dominated commercial lending. There was little alternative to the almighty bank manager.


How to help brokers’ clients raise funds

A mortgage of 875,000 was arranged on a self-cert basis at 4.25% above LIBOR. The mortgage was completed within two weeks of offer, meeting the deadline set by the court. We managed negotiations with the client and gave periodic updates to the introducer, who received a commission of 13,125 for providing the introduction.


Reasons for growth in the commercial sector

Changes in attitude by banks in recent years.
The effect of new lender entrants.
The effect of non-status and self-cert lending on the market.
The impact of market changes on brokers and businesses in general.


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Dear Delia

Dear Delia, one of my clients is attempting to remortgage one of the buy-to-let properties in his portfolio. The property is 150,000 and his portfolio is 1m. He bought this property speculatively about three years ago and the rent only just covers the mortgage. At today’s interest rates, he is going to face a serious problem. Do you have any suggestions? Delia says: Your client has a number of options available to him as Brian Murphy of Mortgage Advice Bureau and John Heron of Paragon Mortgages, point out.

Have you got a problem for Delia? Email mortgage.strategy@centaur.co.uk

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