What does a commercial mortgage broker actually do?
Most people assume it’s simply a case of searching the market for the lowest interest rate.
In reality, that’s just the starting point.
The objective isn’t to find the cheapest product—it’s to find the most suitable one. Price is important, but so are speed, flexibility, structure and, ultimately, the likelihood of getting the deal over the line.
That starts with understanding exactly what the client is trying to achieve, how quickly they need to do it, the risks involved and any issues that could derail a lender’s credit approval.
Once the right lenders have been identified and indicative terms obtained, the broker’s role becomes one of project manager and problem solver. Every lender has a different credit process, and an experienced broker knows how to present a case in the best possible light, addressing potential concerns before they become reasons for decline.
Many people think the hard work ends once an offer is issued, subject to valuation and legal work. In my experience, that’s when it really begins.
Valuations can make or break a deal. Good valuers will engage if something doesn’t quite stack up, giving the opportunity to provide additional information or context. Others may simply submit a report that kills the transaction without further discussion and wherever possible I am trying to work with lenders to use the former type of valuer.
Then come the solicitors. As every broker knows, keeping a transaction moving through the legal process often requires constant communication and relentless follow-up. Brokers only get paid when a deal completes, so they’re invested in making sure nothing stalls unnecessarily.
A recent case is a good example.
The client needed to refinance a £2.4 million private bridging loan secured against a restaurant, wine bar and four residential properties. The borrowing company had previously been in administration—a significant hurdle that ruled out many lenders immediately.
The first task was understanding the history. I prepared a detailed explanation of why the administration occurred, how it had been resolved and why the business was now a good lending proposition. That separated the automatic declines from the lenders prepared to consider the deal.
Speed was critical. The private finance was expensive, and every week that passed increased the client’s costs.
The mixed-use security created another challenge. Rather than using separate lenders, I structured the transaction with one lender using both residential and commercial products. That achieved more competitive pricing on the residential properties while avoiding duplicated underwriting and documentation.
The valuations then introduced fresh obstacles. Although the open market values were acceptable, the vacant possession values on the commercial assets significantly reduced the available lending. After extensive discussions with the lender’s real estate and credit teams—highlighting the quality of the tenants, the strength of the location and the long-term occupation—I was able to secure an agreement to lend at 90% of the vacant possession value.
The valuer also requested a building survey, which was successfully waived because the commercial leases were fully repairing and insuring.
Finally came the legal process. Despite using one lender, the residential loan proceeded on dual representation while the commercial loan required separate representation. Coordinating multiple solicitors and keeping everything aligned required daily communication, but eventually every piece fell into place and the transaction completed successfully.
That’s what commercial mortgage brokers do.
We don’t just search for products. We structure transactions, solve problems, manage multiple stakeholders and keep deals moving when they could easily fall apart.
Finding the right lender is only the beginning.
By Rob Collins,
Senior Associate – Sirius Finance
Visit our website – https://siriusfinance.co.uk
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