We have been approached recently by a number of businesses requiring a commercial mortgage. The advantage of using XL Business Finance is that we have people working for us that have been in very senior commercial positions within banks and know exactly what the banks are looking for in terms of information and types of deals. These businesses recognize that we can add value to the negotiations and dealing with one point of contact saves valuable time and resources. A Finance Director or Managing Director doesn’t need to waste time having interviews with several different finance companies when they can pass over the responsibility to someone that knows exactly what the banks will do and what they are looking for in terms of property and clientele.
The problem with the commercial mortgage market is that there is still not enough liquidity within the banks. They are still being very picky and choosy as to what they will do. As with any lender some are more aggressive than others and they all have a slightly different way of looking at things. Therefore any marginal deals that would have been done before the recession may struggle to get through. In addition it is no longer good enough to have a very loan advance compared with the value of the property. Commercial mortgages are at the moment still difficult to obtain with a low loan to value if the rest of deal doesn’t stack. Serviceability must be proven and ideally the tenant must be of a good quality.
As an independent we know exactly who will do what and be able to find you the most appropriate finance company. This service will not cost you a fortune as for easy cases we will take a fee off the finance company. If the deal is more complex we might take an up front fee however the cost of this fee will hopefully be outweighed by the benefit of us arranging the commercial mortgage.
Tags: commercial mortgages
