Do All Mortgage Brokers Charge A Fee?
If you are considering finding a lender to provide a commercial mortgage then there are a number of ways in which you can do this. For instance, you could do the research yourself perhaps by using the Internet, you may decide just to speak to your bank where you have your business current account of you could ask a commercial mortgage broker to help source a suitable lending package.
Sourcing a commercial mortgage yourself could be quite time consuming and if you merely approach your bank how do you know if they are offering you a competitive deal? However, if you use a broker who has access to the whole of market then he or she will hopefully be able to find you a competitive commercial mortgage.
A broker needs to earn a living and they do this usually in one of two ways. Some will charge a fee for their part in sourcing a potential lender and some will not charge a fee but will be remunerated by the lender that provides the borrowing in the form of commission. If a fee is payable then this is usually either a fixed fee that may be on a sliding scale depending upon the amount of the borrowing or you may be asked to pay a percentage of the amount advanced.
Brokers will no doubt charge different fee amounts for helping arrange a commercial mortgage. They should tell you what the fee is going to be or how much commission they will be paid by the lender prior to you agreeing that they can act for you.
Ultimately, it has to be your decision as to how you try to source suitable commercial finance. If you do it yourself or just approach your bank then you would avoid having to pay a broker’s fee but a commercial mortgage broker may be able to source a more competitive deal than you can do from their extensive panel and you would not have to give up your valuable time that may be better spent in running your business.