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Branching out into something new is always a daunting experience and requires consideration and courage. However during times like these residential mortgage advisers might well be thinking about sampling the the commercial mortgage market, as a means of enhancing their revenue, their knowledge and their client base.

For some this might mean stepping out of their comfort zone but Stephen Johnson, sales and marketing director of lender Commercial First, said it would be a bold but potentially rewarding strategic move for mortgage intermediaries from a residential background to branch out into the commercial sector.

Mr Johnson urged advisers to realise the turbulent times of the last nine months will not last forever. As with most things financial, he said the current market turmoil was a cyclical process and the market would rebound eventually.

He said: "Diversification now could not only prove to be an invaluable source of revenue in the short-term, but could provide intermediaries with a platform from which to develop their business when the market does recover."

The residential market has seen some dramatic events in the last few months, which has resulted in lenders tightening their criteria across the board and subsequently making it difficult for advisers to turn a profit.

Conversely, Mr Johnson said the commercial mortgage market had been somewhat insulated from the liquidity crisis due to the number of large, on balance sheet lenders operating in this space.

The best approach that a residential adviser could take when trying to get to grips with the commercial side of the business is to partner with a specialist adviser, according to lenders operating in this part of the market.

This way the adviser is able to effectively learn on the job and generate income while at the same time observing the differences in commercial mortgage sales and the application processes.

However there is another option for intermediaries looking to widen their remit, according to lenders.

Attending training events, researching the market and approaching commercial mortgage lenders should be a route into offering advice to business owners, which would involve committing time and resource to build the necessary expertise, Commercial First's Mr Johnson noted.

Jonathan Moore, head of marketing for Sevenoaks-based IFA Mortgages for Business, said residential mortgage intermediaries should be aware of quite how different it is to do business in the commercial industry compared with residential.

He said: "Commercial mortgage transactions tend to be far more complicated than residential mortgage transactions because there is a need in the majority of cases to negotiate a headline rate on the client's behalf, rather then using the more simple products in the residential sector."

He warned commercial mortgages tend to have a higher propensity not to complete and also a longer lead time, so revenue was far less assured.

Without trying to put any advisers off making the transition, Mr Moore said commercial mortgage products were also more difficult to source.

He said: "No sourcing tools such as Trigold for residential mortgages exist and there is a need to have much strong relationships within the commercial finance industry."

Anna Bennett, marketing director of InterBay Commercial, said one barrier to more residential advisers recommending commercial deals were misconceptions about this side of the industry.

She said some residential mortgage intermediaries wrongly felt processes were long-winded and cases hardly ever completed.

For an adviser wanting to take the leap into the commercial mortgage market, it is important to be aware of all the support networks available to help fulfil clients' needs and complete the deal, Ms Bennett said.

She added: "Getting that commercial deal is not as difficult as many think. It is estimated that only 15 per cent of commercial deals are placed through an intermediary, making this a market that is crying out for access to advice.

"Furthermore, it is estimated that 25 per cent to 30 per cent of every intermediary's client base is self-employed, so a residential mortgage adviser might already be potentially sitting on a goldmine of clients who require an independent commercial service."

What lenders operating in this arena seem agreed upon is making the transition from residential mortgages to the commercial mortgage industry, or adding in commercial to your existing activity, is absolutely achievable.

However it is clearly something that must be given the appropriate amount of time and commitment and not seen as just an opportunity to make quick money.

Those that are willing to make this commitment will have a business with a more diversified client proposition, something that can prove vital when markets become difficult like they are today.