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Give us a commercial break

Has the recent influx towards new lenders in the commercial mortgage market had a negative affect on borrowers?

Lenders entering the market have to fight for market share by offering low interest rates and spending substantial sums on their distribution channels such as introducing even more incentives to brokers.

If brokers are being offered high commission from certain lenders, why would they shop around to find the deal which works best for the client?

Commission as such is not the issue or brokers wanting to maximise their revenue – not at all.

I am referring to brokers concentrating on only a handful of lenders as it is easier and more rewarding.

It may well be that a lender paying high commission is the right choice for a particular client. On the other hand, if the broker has not got the ability and motivation to shop around, then how does the client benefit?

We have seen this before with endowment policies, when the client needs and the commission paid were not in synch. Are we in risk of this happening again?

There are plenty of specialist commercial finance brokers with a track record to prove they have the right experience. ASC has been established for over 30 years and recognises that if the deal fits the client, everything else will fall into place.

An experienced broker will always aim for a win-win situation for both the client and himself.

Henry Ejdelbaum

ASC Partnership

Regents Park

London NW1

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