Guide

Commercial mortgages and lenders

Different types of commercial mortgage lenders

High street banks and building societies are not necessarily the best places to start looking for a commercial mortgage, although major banks often have advisory services which can be helpful. If you have a good relationship with your bank, it is worth checking to see if they can help you.

It may be worthwhile locating a specialist lender who understands the specific needs of your industry. There are also many lenders online. Be careful which one you choose and ensure that they are certified.

Using a mortgage broker

A mortgage broker's role is to help you to find the best mortgage to suit your needs, giving you impartial advice on products and steering you through the mortgage application process. Once you have successfully obtained your mortgage, your broker will be willing to continue to monitor the market to make sure you are getting the best deal.

It's important - particularly for small businesses - to get the right kind of finance at the best price. Many commercial brokers work in specific business sectors and someone working in your sector might be able to help find you a special deal.

Using a broker can save you a lot of time, as they have specialist market knowledge and will be able to find certain deals that are only available through brokers. They may not charge you a fee if they receive commission from the loan providers, but be willing to negotiate if they do.

Check that your broker is independent - instead of being tied to just one lender - and will consider all the available options.

The National Association of Commercial Finance Brokers (NACFB) provides a search for specialist commercial finance brokers.