Using a Broker

Brokers provide professional and impartial mortgage advice. They will have considerable experience and are experts in finding the right finance package for your circumstances.

Sterling Capital Reserve Limited is a member of The National Association of Commercial Finance Brokers and can fulfil this role.

Small businesses require the best finance for their enterprise and the right finance must come at the right price. Commercial Brokers that work in relative business sectors understand the needs and risks of business ventures. We will search to find you a deal that is most suitable for your business needs. We can also help those borrowers who have adverse credit histories or complex mortgage requirements.

What you need to know about our Broker service:-

  • Are you tied into one provider or do you look at all available products from many providers? – We can ensure they get you the best deal for your own circumstances by looking across the whole market on your behalf.
  • Do you charge a fee? – We can give you the best advice on available products on the market and can secure a deal that is right for you, but may charge a Broker Fee to cover our professional time and expenses.  Each proposition is looked at on its own merits and an illustration will be provided at the time of your enquiry so that you are aware of all costs.

The Cost

As Brokers, we earn our money either by charging you a direct fee or by working on a commission basis.

Commission of between 0.50% and 1% of the value of the mortgage is paid to brokers by the mortgage lender. For example, a broker would earn between £750 and £1,500 on a £150,000 mortgage. Commission earned by the broker is paid by the lender not by you.

Sterling Capital Reserve usually earn money through commission from lenders however if there is to be a lower lending total or your needs are complex, we may charge you a Broker Fee. This fee will be up to 1% of the mortgage value.

We have provided these figures as a guideline – the cost of employing a broker to arrange your Commercial or Buy to Let finance varies and is dependent on the complexity of the borrowing and the borrower’s own circumstances.

Other potential costs...

The Lender will charge an Arrangement Fee. This will vary between 1 and 2% of the amount borrowed. In most cases Lenders will allow you to add this to the loan but may well ask you to pay a Commitment Fee of 0.25% when you return the signed Offer Letter. This will be deducted from the Arrangement Fee when the mortgage is drawn.

The property you are borrowing against will need to be valued so that the Lender has an independent opinion that it is worth the purchase price or the value stated by the borrower. Lenders will ask a Professional Valuer to carry out this task and you will need to pay for this before it is undertaken. The valuation cost can vary depending on the type of property and is not refundable should the mortgage not proceed. Sterling Capital Reserve can provide you with an illustration of the proposed valuation fee to help you with your decision making.

There are other costs to take into consideration such as: Buildings Insurance, Stamp Duty Land Tax, and Legal Fees for both you and the Lender.

Please also be aware that Lenders may well charge an Early Redemption Fee if you repay your mortgage