How Are Commercial Mortgage Brokers Remunerated?
If you are looking for a commercial mortgage then you can try to source one in a number of ways such as by speaking to the bank where your business account is maintained, trying to raise the required funds through a peer-to-peer lending platform, do some research through the Internet and get in touch with a number of lenders that you think may be suitable or contact a commercial mortgage broker for their assistance in finding a suitable lender. If you choose the later route then you will no doubt want to know how the broker is remunerated.
If you speak to a number of mortgage brokers you will no doubt find that the way that each of them is remunerated may differ in some way. For instance, you may find that some brokers do not charge the client a separate broker’s fee directly but, instead, are paid a commission by the lender. However, some brokers may charge their client a fee that is either for a fixed amount or a % of the amount of the commercial mortgage subject to minimum and/or maximum figure. Sometimes a broker may charge an upfront fee that is non-refundable for trying to source suitable finance with a further fee being payable should the lending be drawn down.
You will be pleased to hear that the broker will readily provide this information up-front so that you know exactly where you stand.
When choosing which commercial mortgage broker to use to help you source suitable finance you may wish to select one that is independent who has an extensive panel of lenders providing you with access to the “whole of market”. In doing so, this should hopefully enable an extremely competitive financial package to be sourced on your behalf from the most suitable lender enabling you to help build your business.