February 10th, 2014. Ben Lloyd
How can I tell I’m getting the best commercial mortgage quotes?
When it comes to buying a new commercial property, getting the right mortgage is absolutely essential. Even if you’ve managed to find the perfect property for a great price in a location that’s expected to increase in value, if your mortgage repayments are unaffordable then you’re scuppered.
Here are some of the best ways of figuring out whether or not you’re being offered the best mortgage rates:
Do the research
Thanks to the power of the internet, it is incredibly easy to find out what kind of rates lenders are providing. By taking a bit of time out of your day you can find out which lenders provide the lowest commercial mortgage quotes. Unless you directly talk to the lenders however, you cannot be sure that this is the quote you’ll receive but you can get a good idea of what to expect.
If you’re after really basic comparisons then check out some of the online comparison sites. These will take into account the amount you have for a deposit, how much you want to borrow and your income. This will then work out which lenders are likely to provide you with a mortgage and at what rate based on LTV. Be aware that these are largely generalised and lenders who were brought up may not support the industry your commercial mortgage is needed for.
Use a whole-of-market broker
Brokers can make your life a whole lot easier, especially if they look at the whole-of-market. A broker will take all your information and use their industry contacts to find you the best deals out there. Unlike internet comparison sites, brokers know exactly which lenders favour your type of industry – helping you get tailored commercial mortgage quotes for exactly what you need.
Another benefit to bringing in a broker is that they have access to many specialist commercial lenders that you won’t find on the high street. Many of these lenders provide lower rates than bigger lenders and could end up saving you a fortune in interest.
Different rates for LTV percentages
While it is pretty common to expect lenders to provide different rates depending on the loan to value, some of them will have drastic leaps in their rates. For example if you were offered a rate of 3.4% with a 60% LTV but could only stack up 80% LTV the rate could jump up by 2-3%. This will make it much more expensive, so make sure you check the differences before agreeing to anything.
Try to find out what the rates are at a range of different LTVs, this will give you a much better idea of where the best rates can be found. Generally the more of a deposit you can put down the lower the rates will be, however this can be different from lender to lender so be sure to check.
At Pure Commercial Finance we pride ourselves at being the best at getting you the lowest commercial mortgage rates. Want to find out just what we can do for you? Get in touch for more information.
Article By Ben Lloyd
February 10th, 2014
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben