Value Of Loans For Commercial Property In Default Drop
A report has revealed that, in 2014, lenders providing commercial property loans here in the UK have significantly reduced the value of such finance that has defaulted. De Montford University that is based in Leicester obtained the data from 83 lenders.
In fact, lenders reduced the value of defaulted loans on commercial property by around £21.5 billion to £23.2 billion last year. As you can see, this is a reduction of close to 50% which is a significant amount but why have they been able to take this action?
Apparently, a major reason why lenders have been able to make this adjustment in their lending books is because commercial property values have risen in some cases enabling them to reduce their exposure levels. It will be interesting to see if the above has any significant impact on the commercial mortgage market through the remainder of 2015 and beyond.
There are now numerous providers of commercial property finance in the UK. The days when it was just the major high street banks that did so are long gone. Many building societies have commercial mortgage departments but there are also a number of specialized lenders out their including the emergence of peer-to-peer lending platforms.
There is no doubt that the more lenders there are the better as competition for business can only be of benefit to the end user. The difficulty from a customer’s point of view is sourcing the most suitable finance deal to meet their requirements from the vast number of providers. There are so many factors to consider such as the interest rate including the type, the range of fees, the security requirements and the repayment terms.
In this respect, should you be looking for a competitive commercial mortgage package, why not get in touch with us as we provide access to a panel of reputable lenders that arrange such borrowing.