With HSBC coming out with a pledge to lend at 90% LTV for residential property are they offering the same hand of friendship to their COMMERCIAL MORTGAGE customers.
You would think that the two would go hand in glove would you not. If we do not support businesses where are the jobs coming from to enable clients to take advantage of the offers to get on the housing ladder.
At present there are no signs of any easing of the underwriting of COMMERCIAL MORTGAGES, where if anything what we are seeing is lenders being more conservative in their approach to a proposal and looking for that little extra comfort zone. This could be additional security, personal guarantees, or a debenture on the company. All of which are not ideal for clients but the name of the game in the current COMMERCIAL market is low risk with excellent coverage of the ability to service the debt.
Not good news for marginal cases then and the difference between High Street deals and the specialist lenders operating in the light touch or self certification of income market is light years apart.
If you are drinking in the last chance saloon for your COMMERCIAL MORTGAGE, it is not the place you want to be with interest rates starting from around the 10% mark and going up. With BOE at 0.50% you would be sitting on a time bomb signing up to some of the crazy schemes that spell only one word for your COMMERCIAL MORTGAGE, its disaster.
Its worth hanging on in there and waiting for the market to come back when a level of confidence returns and property prices begin to stabilize, and then we see a return to positive growth, following that COMMERCIAL lending will become so much easier to achieve.
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