Projected Level Of UK Commercial Lending Looks Positive
Research carried out by the Property Finance Forum and Laxfield Capital reveals that commercial property lending could reach its highest level “post-crisis” by the end of 2015. This is potentially positive news for this lending sector.
Lenders providing mortgages on commercial premises had in excess of £11 billion of lending application cross their desks for consideration in the second and third quarters of this year, Potentially, lenders could end up funding commercial property loans in excess of the £45 billion that was lent in 2014.
It is interesting to read that such borrowing is being made available on an increasing basis on properties outside London. In fact, there are more requests for borrowing on commercial property outside the capital city than in it than there has been for a number of years.
There has been a drop in the number of loans being requested with a minimum loan to value (LTV) of 70%. The average LTV is 56% so lenders do seem to be benefitting from a reasonable security margin. However, approaching 50% of loan applications were for LTVs in excess of 65% in Q2 and Q3 of this year.
There are many providers of commercial mortgages so it is important that applicants shop around to try to get a competitive finance package both in terms of interest rate but also fee structure. Probably, too many businesses just approach the bank where they maintain their business current account when it comes to seeking a commercial loan secured against commercial premises. Yes, the bank may be offering an excellent package but unless you look at other lenders you will not know if you could have got a better deal elsewhere.
Therefore, why not get in touch with Commercial Mortgage Link and let us put you in touch with a broker who has specialist knowledge of the commercial property lending sector and also has an extensive panel of lenders at their disposal.