Do you really know Commercial Finance?

When we mention Commercial Finance to brokers, the response we receive the most often is &ldquo

When we mention Commercial Finance to brokers, the response we receive the most often is “I don’t get commercial mortgage leads”. If you have any clients that hold investment properties, then you do!

Gone are the days when the commercial lenders will only look at factories, shops and offices. Today’s commercial lenders have much more of a varied appetite for property and can work really well alongside your more traditional lenders.

For example, commercial lenders will look at properties including:

  • HMOs
  • properties let to students
  • flats above shops

Commercial lenders will also look at large or mixed investment property portfolios, professional landlords and larger loan amounts. Basically, any unusual property types, or things that may not work with your normal lenders, can all be considered by a Specialist Distributor with access to commercial lenders.

If you have a landlord looking to venture into the HMO (Houses of Multiple Occupation) market or an experienced investor looking to expand their property portfolio with an HMO, then Crystal Specialist Finance can help! We've compiled your essential go-to eGuide for everything you need to know about advising your clients on purchasing an HMO or converting a property into an HMO. Get your free copy by clicking here.


With the tax changes on the horizon over the next few years for buy-to-let landlords, we are seeing an increase in demand from investors utilising a Limited Company to purchase their properties. Commercial lenders are experienced at working with Limited Companies and offer some extremely competitive products – even when compared to mainstream traditional buy-to-let lenders.


As an example, we have a case completing at the moment for a £1.6m loan on a portfolio at 75% to a limited company with a rate of 4.65% on a full-term, interest-only basis.

Now that is not to say we cannot do the factories and offices too. We have lenders that will look at the full spectrum of properties, and we work with brokers with all levels of experience to ensure your clients are matched with the right commercial mortgage product for their circumstances. So if you have never come across a commercial deal before, we can work with you to give you the confidence that this is something you can place.

Remember, if a customer has a deal you cannot do, they will find someone that can – and that new broker will be asking for all of the other business you get from them!

‘Commercial’ is not a dirty word.



Think about Crystal Specialist Finance when you come across an unusual:

  • property
  • client type or structure
  • scenario

Our team of specialists are on hand to discuss any proposition with you and to work with you to find the best solution for your clients.

 

 

5 Myths About Mortgage Declines

The phone ringing is normally a good sign… except when that call is to tell you that your cli

The phone ringing is normally a good sign… except when that call is to tell you that your client's case has been declined.

Declines are a frustrating inevitability in the world of mortgage brokering.  While it may seem like the end of the road, this simply may not be the case.

Below we will go through the 5 most common misconceptions about declines and what you as a broker can do about it!

Myth #1 They’re caused by an unmortgageable client

In an ideal word, all clients would have squeaky clean financial records, perfect accounts and bank statements; and it would be incredibly easy to fit them to a simple product with a great interest rate. But the world doesn’t just come in black and white, and your client may have a little grey in the background.

There is no such thing as a bad client, just the wrong product that doesn’t cater to their needs. Crystal Specialist Finance’s product panel can help those with adverse, first-time buyer or landlords as well as those without any income.

Myth #2 Your case was declined for no good reason

As banks may restrict their lending during times of uncertainty (case and point: Brexit), lenders become more and more choosy about who they’ll lend funds too. With this in mind, the lenders could be scrutinising your client’s credit reports, business accounts and other application details more closely than usual.

Remember, lenders want to lend but have to fit their models and profiles.

Myth #3 Cases can’t be declined after an Agreement In Principle

It’s sad but true - even when you feel like the case is safely in the bag, financial institutions can still decide not to release funds. When a client is looking to complete quickly, a “no” at this stage of the game could have serious consequences.

Don’t let a late decline ruin your client’s plans! No matter how late in the game you get the news there is still a possibility of a quick completion. Just this week we’ve completed a residential mortgage case that was previously declined… in just two weeks!

Myth #4 A declined case has wasted your time

We know a lot of work goes into completing a case. From the initial meeting to the fact find, not forgetting the sourcing of products and advice you’ll be providing, an application can take up a lot of time if you’re doing it right.

Even though your original lending choice hasn’t accepted your offer, the information gleaned will only make it easier for packagers like Crystal Specialist Finance. Simply provide us with everything you’ve collected and we’ll be able to work with that to continue the process!

Myth #5 A decline means no!

Getting a mortgage decline at any stage of an application doesn’t mean the end of the road for your client. As each lender has their own set of criteria to lend against, your client's case won’t be for everyone. Reaching out to a packager could be the solution.

At Crystal Specialist Finance, we have a lending panel that spans the market. From the High Street to Challenger banks, we look into every possible option to fund your deals. Throw into that our range of exclusive and semi-exclusive products; we'll be sure to present some attractive options. 

 

About Us

Crystal Specialist Finance is one of the most well respected and fastest growing finance distributors in the UK.

We offer specific expert advice, products, and award-winning service to brokers and networks across five core markets: Commercial Finance, Bridging Loans, Development Funding, Second Charge Loans and Specialist Mortgages.

Operating across England, Scotland and Wales, we have access to over 70 lenders, including exclusive lines.

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01827 301 070

info@crystalmortgages.com

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