Base Launches Fast-Track Commercial Mortgage Offering Guaranteed Commission

Base Commercial Mortgages Limited, the special commercial mortgage lender, is launching a fast-track commercial mortgage specifically designed to cater for small loans up to £150,000, which guarantees brokers will earn a minimum commission of £1,000.

Paul Marland, Sales & Marketing Director at Base Commercial, said: “Small commercial mortgages present brokers with a real conundrum, because they involve as much work as significantly larger deals but, with fees being calculated as a percentage of the loan, they generate only modest proc fees. Our product guarantees to pay a minimum commission of £1,000, which represents 4% on our minimum loan of £25,001. What’s more, we will also charge the client an arrangement fee of only £250, providing scope for brokers to charge an additional fee for their services.”

All mortgages will include title insurance, which means they can be fast-tracked and borrowers should encounter no unnecessary delays.

The product comes with the following features:

Loan size:    £25,001 up to £150,000
Maximum LTV:  75%
Arrangement fee:   £250
Commitment fee:   none
Legal fees:    £200 + VAT + disbursements
Title insurance premium: £135 + IPT
Broker commission:  Min £1,000 or agreed terms, whichever is higher
Product type:   Full status and self-cert

Full product pricing and lending criteria information are available by phoning Base Commercial on 01733 404515 or by visiting: www.basecm.co.uk

Base Commercial is marketing its fast-track product for smaller commercial mortgages via a panel of key distributors, which includes TBMC.

Nick Reeves Head of Commercial Lending of TBMC, said: “Small commercial mortgages haven’t always been cost-effective for brokers because they do not generate much income and this product addresses that issue head on, which will be welcome news to brokers throughout the country. However, not only will the product appeal to intermediaries but also to borrowers, as it comes with a low arrangement fee, no commitment fee, highly competitive legal fees and title insurance with pricing based on lower margins than industry norms.

“In addition, the fast-track facility will appeal to borrowers who want to complete arrangements quickly and not get bogged down by protracted legal processes. This is an excellent development and I’m sure it will be popular with both borrowers and brokers.”