Monyy Property Finance Blog

There’s a world of difference between a residential mortgage and a commercial mortgage.

Most of us are used to having and paying for a residential mortgage. They are readily available (even now, for most) and quite well understood by most too; we’ve all become property savvy over the last few years, even first time buyers. So we’re no longer afraid of the bewildering rates and jargon. We have an instinct for which is cheapest overall, and most of us just worry about whether to go for a fixed, variable or tracker rate. That’s it.

Hundreds of suppliers compete heavily for our attention and for our business in residential mortgages. But this is not the case when it comes to commercial mortgages. When, for instance, did you last see an advert for a commercial mortgage in any off line media? Thought not, me neither.

Commercial mortgages are readily available too, but illusive; they hide just under the surface. You have dig through the top soil a bit to find them. truth is, most high street banks offer a commercial mortgage but if you ever go into one looking to discuss the options, I guarantee the person will glaze over slightly, pause, and then pop off to find someone who knows something about them. And no one will. You’ll be told these are dealt with ‘elsewhere’ and you’ll be left with the challenge of sorting through the corporate maze.

Then, if you want to compare products, rates and terms, you’ll have to do it all again, with each high street bank. You’ll needs lots of energy, and time, to get to the point of decision.

There is some merit in doing all this of course, and that is you may well find a cracking deal you can live with, with low fees and great rates. And if that is the outcome, it’s a job well done.

If, however, you’re a busy person with a micro or small business to run, this option may not be available to you. It’s under these circumstances that talking to a well connected finance broker, especially a commercial finance broker will pay dividends. And the really good news is that most good brokers don’t charge you anything for their services. They just get on with finding the best deal for you and get paid by the lender for the introduction. Everyone wins.