You are here: Home - Specialist Lending - Bridging -

How to broker deals in the semi and fully commercial property market

by: Jonathan Rubins is director of Alternative Bridging Corporation
  • 13/06/2017
  • 0
How to broker deals in the semi and fully commercial property market
For those brokers who are new to short-term lending on commercial properties it is worth pointing out it has pluses and minuses, writes Jonathan Rubins, director of Alternative Bridging Corporation.

The good news is that the loans tend to be larger than home loans and brokers are fishing in a bigger pond where there is less competition.

However, the loans are more complicated and so there is a learning curve.


No one property description fits all

First, when considering new opportunities, there is no one property description that fits all commercial loans. To one broker it can be a retail shop and upper parts, to another a portfolio of ASTs and to a third a warehouse or factory; which is it?

More questions come thick and fast. Is it for an owner-occupier or for an investor? Is it for the property industry or the business community? All pose opportunities for enterprising brokers.


How to offer your client smooth service

  • Check the adequacy of security offered, the borrower’s ability to service interest and the certainty of the exit route
  • Be prepared to act as the facilitator and negotiator – diplomacy is key. The process sounds simple and so it should be if the borrower, broker, two firms of solicitors, the valuer and lender are all pulling in the same direction, but rarely is this the case and so much of brokers’ and lenders’ time is spent accelerating the performance of all parties
  • Make sure the lender specialises in commercial loans and has the funds available and is not a blender hoping he may just pull off the impossible.
  • Deal with only established lenders and check the case studies on their websites – see that they have done it before, not just occasionally but all the time.
  • Give the lender what they ask for at the outset, properly presented and in one package: it delays the process to drip feed the information.
  • Give the lender time to review the material, but not too long – 48 hours is more than sufficient for a case to be reviewed and indicative terms issued subject to credit committee approval.
  • Meet with the lender, sit around the table – broker, borrower and lender, discuss the proposal, answer questions and resolve issues. In this way, the lender can obtain its credit committee approval. On their acceptance, instruct their solicitor and valuer – all parties working in parallel – no one waiting for the other.

There are 0 Comment(s)

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions

Read previous post:
interest rates
House purchases reduce market share as rates and LTVs slip – BoE

New residential mortgage activity continues to fall, along with mortgage rates and loan-to-values (LTVs), according to the latest Bank of...