Brokers highlighted that many investors looking to move from buy-to-let into commercial property needed to understand the differences in costs.
Speaking on Specialist Lending Solutions Television in association with Aldermore, Coreco partner for specialist finance Matt Yassin said there was a lot of educating the client regarding cost.
“In the buy-to-let market for mortgages people are generally cost-chasing, rate-chasing, [asking] who’s providing the best rate,” he said.
“When you’re looking at commercial there’s so many variables, you need to understand that cost isn’t so important as long as your bottom line meets your expectations.”
Yassin also noted that moving into commercial finance was more daunting than buy to let and warned failures could leave investors “in a very bad place”.
Sirius Property Finance co-founder Robert Collins echoed Yassin’s concerns and emphasised the importance of understanding the differences in leases and methods of repayment.
Watch all the videos in our Aldermore commercial finance debate on the Specialist Lending Solutions website.