Total Amount Outstanding On Commercial Property Loans Increases
The De Montfort Commercial Property Lending Report covering the six-month period to 30th June 2016 has revealed that the amount of such lending has increased in comparison to the half year ending 30th December 2015. The data making up this report is provided by up to 60 lenders that include the likes of building societies, insurance companies and banks.
The total of the outstanding commercial property loans as at the 30th June 2016 stood at £173 billion. When compared with the figure for such borrowing as at the end of last year (£168.4 billion) that equates to a rise of 3%.
Of the £173 billion of outstanding borrowing, 89% of it was subject to a LTV (Loan To Valuation) of up to 70%. In fact, the average LTV for building societies and banks here in the UK in respect of such lending was 59%. This probably provides those lenders with a certain degree of comfort should one or more be faced with a situation of having to realize their security should a borrower default on their liability.
Interestingly, the amount of new borrowing of the type referred to above actually dropped to £21.4 billion in the first half of 2016 from the £29 billion lent in the second half of 2015.
If you are considering applying for the likes of a commercial mortgage to say purchase business premises then there are a number of potential avenues open to you as there are so many providers of such finance. As you can see from the above there are banks, insurance companies and building societies. In addition there are specialist lenders including peer-to-peer platforms with the later having grown in popularity in recent years.
So, why not contact us here at Commercial Mortgage Link and we will put you in touch with an experienced commercial mortgage broker who has access to numerous lenders thus providing you with the potential opportunity to source a competitive commercial finance package.