Commercial Property Lending Rises In 2015
A few days ago, the De Montfort Commercial Property Lending Report was produced that has revealed there has been a large increase in new lending for commercial properties in 2015 when compared with the previous year. Of course, this must surely be good news for those involved in providing such finance but it is also great news from the customer’s perspective as it would seem to indicate that there is an availability of such funding for propositions that fulfill a lender’s underwriting criteria.
The report is put together by a number of De Montfort University academics with the information being provided to them by numerous building societies, insurance companies and banks.
According to the report, new commercial property lending totalled £53.7 billion last year whereas, in 2014, the amount of such borrowing amounted to £45.2 billion. That is an increase of £8.5 billion that equates to an increase of 18.8% – a huge rise.
Of the total amount of new commercial property lending, some 43% of it was supported by security over London property. This was a big increase when compared with the figure of 26% back in 2010.
There are many providers of commercial mortgages here in the UK. The days are long gone whereby it was just banks that provided such finance. Many years ago, some of the major building societies started to provide such borrowing and in recent years a number of specialist lenders have come on the scene including peer-to-peer lenders.
With so much choice, it is important that the customer obtains a competitive commercial lending package. In this respect, one of the ways of potentially achieving this is to use a commercial mortgage broker that has an extensive panel of lenders at his or her disposal. Here at Commercial Mortgage Link, we can put you in touch with such a broker who can discuss your requirements without any obligation on your part to proceed.