Perhaps one of the most exciting things to happen in the commercial lending sphere of late, is the recent decision by property mortgage giants Proplend to open their commercial lending products to personal borrowers. The peer-to-peer lender couldn’t have announced their decision to a more receptive group, as the current pressures of being a residential landlord can take its toll on an investor. While there are a number of benefits to a residential buy and sell, this additional commercial avenue could open a few more doors.

Commercial Lending Rates

One of the advantages of dealing with the professional team at Pro Buy To Let is that investors always know that they’re getting the best deal on the market. That is because the team works hard to forge relationships with financial institutions and keep their finger on the pulse of the best deals out there. Commercial lending is often a hazy avenue, with few investors knowing exactly what they’re getting into. Currently, unfair enrichment by financial institutions is under investigation and a class action lawsuit is underway against Clydesdale Bank and former owner, National Australia Bank. One of the biggest gripes they have with the bank is that unfair margins were added to the fixed-interest rates on these loans. It’s important that consumers read through the fine print where rates are concerned in order to detect whether the charges are above-board, or refer the documents to an industry specialist to have a look.

Commercial Lending Banks

There are quite a few financiers who are willing to extend commercial lending products to customers, and sifting through the lot to find the right match can be a tiresome task. A mortgage broker or commercial lending specialist might have an easier time going through the options, as they are familiar with the industry and all the players in it. Metro Bank also seems to be in a bit of hot water over the incorrect disclosure of their figures, prompting some of their bigger commercial lending customers to seek out other financiers. This unfortunate slip resulted in 54% drop in stock since the beginning of the year, which is a tough number to recover from. For those who seek assistance with commercial lending, it’s important to consider the reputation of the institution before signing up for any products. This is where the help of a mortgage broker comes in very handy.

Commercial Lending Jobs

There are two pillars that make for a successful commercial real estate investment firm. The first is that it has a sound a positive consumer sentiment. The second is that it fuels the economy by means of job creation and proper asset holdings. Without those components, it’s hard to source good leads to build up a successful portfolio. This, in turn, stems into the market sentiment and how financiers few the entity, which is important in order to determine the commercial lending possibilities. The size of the firm has no relevance to its potential for success, only the quality of internal and external assets do.

Commercial Lending Real Estates

In order to be a successful investor in commercial real estate, it’s important to gain an understanding of the market conditions that prevail in the area the property is situated in. For instance, those who managed to land a property in Blaenau Gwent a few years ago, will experience the sweet smell of success as the property market in this area rose by 16.3% in the last year. Those who happened to purchase a property in Westminster, however, may have to face a drop in value of 19.6%, which is a hard knock on something as substantial as a property. Commercial lending real estate figures will also reveal that in these cases, there is a possibility that these properties reveal a negative equity situation.

Commercial Lending Criteria

It’s also important to gain an understanding of the different types of real estate to invest in. For instance, it’s possible to be a commercial investor in residential real estate, or an invest in commercial real estate. When it comes to meeting the commercial lending criteria, financial institutions such as mortgage brokers and banks will have their sets of requirements. Dealing with a professional broker will afford the applicant the opportunity to find out whether they meet the criteria off the bat. Some things to consider include whether they have a sufficient down payment, whether they can afford the repayment, and also whether they pass the various stress tests.

Commercial lending is slightly more complicated than residential and for those who wish to enter this market, it pays to do some research before setting your heart on that factory or shopfront. Not only are the finance requirements different, but there may also be a different element in terms of property management to consider, which is why signing up with Pro Buy To Let is a must.