If you have cash in this market then you are set to make a lot of money in the future when the market comes back. Cash is King and never so true as now in this market where only the brave will survive.If only the banks would trust the clients who have proved over time that they know what they are doing, they would be building up good lending on low loan to value with good rental coverage.
Short term finance has filled the void but for how long can this go on without the banks coming in to take out the initial finance and replace with long term commercial mortgages. Short term finance was never meant to be open ended, but that is what is happening when clients take a flyer on a deal in the knowledge that they have nothing in place to take out the short term facility and are looking for a change in the market to enable banks to come back with confidence.
The lenders must make a real return to the market not a token one, and get businesses thriving again, lending to expand and get some of those workers off the dole queue and back to work paying tax and helping the country to get back on its feet.
Commercial mortgages, finance, and business loans is the life blood of bringing industry and business back to life, the banks must reach out and start to lend and lend now.
[ add comment ] ( 2 views ) | [ 0 trackbacks ] | permalink |
( 2.7 / 152 )The lenders although very cautious in the current market conditions still find commercial investment properties far more attractive as a proposition to lend on than the owner occupied property.
Lenders are looking for clients with long commercial leases, FRI and 3 or 5 year rent reviews, and if possible a recognised tenant with good financial strength.
Provided that the rental income services the mortgage interest by an acceptable margin, the clients own trading position is not irrelevant, but far less important, as lenders want to see that any investment property is self financing.
The margins by which lenders calculate affordability have certainly got wider as lenders tend to use notional rates to calculate coverage rather than the actual BOE base rate because as we are all aware rates will not stay at this level and lenders do not want clients to over extend themselves in this current market, in the certain knowledge that many clients would suffer when BOE rates rise to anything like the previous levels at between 4--5%.
Most investors have tended to go for maximum leverage, which would not be wise in this current low interest rate market.
We can expect most commercial mortgages to be set with a margin around 3---4% above base, and with BOE at 0.5%, its a very good deal. However with BOE at 4% its a very different story, and this be upper most in our minds when we look to see how any loane maybe covered in the future.
LOng term planning and doing our due diligence with the future interest rates in mind is so essential to make sure that we do not run into trouble with a commercial mortgages in a very different interest rate climate, when servicing the debt maybe a little harder.
[ add comment ] ( 3 views ) | [ 0 trackbacks ] | permalink |
( 3 / 125 )Why do we need to seek the services of a commercial mortgage broker when we might just as well ring round ourselves and try to get some interest in our proposal, what are the advantages of using a commercial mortgage broker.
If we had a normal market you could argue that you have all the time in the world and could do your own research, and maybe get lucky and find a lender who will help you. Whether you have got the best terms for that loan remains to be seen.
However in this market more now than at any time in the past the services of a commercial mortgage broker should be sought to help you through the process of obtaining a commercial mortgage. Lenders are very cautious at present and anything that even smells like it may have some risk, receives a polite no.
You need to know your market and the lenders in it, and what they are looking for. A good relationship with a lender is worth its weight in gold to have them trust you and know that you will only introduce quality business.A lender will always try to help a good introducer,both in terms of service and the lending terms. That relationship cab be worth 0.25% on the rate and a tweak on the fees.
Nobody wants bad business, and those that have accepted it in the past are no longer lending, which tells its own storey. A good commercial mortgage broker will know where to look for the right lender to lend in your particular circumstances and how far he can go to squeeze the best lending terms for you out of the lender.
[ add comment ] ( 2 views ) | [ 0 trackbacks ] | permalink |
( 3 / 134 )Have we seen any major changes over the weekend to give us that little bit of confidence that now we are in springtime the sun is about to come out on the world of banking and finance.
It would be nice to report that the sun has got his hat on hip hip hip hooray and life in financial terms is back to normal. It is to early to say if the quantitive easing, or the printing of extra money has had any impact on the banks attitude to lending, bcause this was a massive decision to make, like dropping a national icon, Bobby Moore from the England Team, you cannot be sure if you have done the right thing and only time will tell if it going to work. The cost of failure is unthinkable, a short sharp painful shock we can cope with, but years of depression is not on the agenda.
If we can just get the banks to see that siiting on balance sheet does not help anybody, we have to get the wheels of industry and business back on the road to recovery and access to commercial mortgages, finance and business loane is a must and the sooner the better for everyone.
The banks have to turn on the tap and get the money flowing again around the markets. You cannot starve businesses of cash flow and expect them to survive and grow. Without growth and confidence there will be some very long dole queues for a very long time.
Lets say it again just in case the banks did not hear us, we need access to commercial mortgages, finance, business loans and flexible banking NOW.
[ add comment ] ( 3 views ) | [ 0 trackbacks ] | permalink |
( 3 / 127 )Those two magic words that most of us have never heard of let alone know what it means, come into play today for the first time in recent times QUANTITIVE EASING.
What in english does this mean, printing more money and punmping it back into the economy. Sounds quite simple, well if it was why did we not do it before. Lets not go there, most people use commom sense before we make a decision, very saddly there are not any schools who teach this degree and most of our ex UNI people who leave stuffed full of degrees in all sorts of ollergees, do not not have a clue what you are talking about when you use those magic words, ITS COMMON SENSE,god help us.
In order to get our banks lending again the first purchase of £2 billion worth of government bonds from financial institutions will start today.If we pop down to our bank tommorrow full of the joys of spring and ask for help with our commercial mortgage, finance, or business loan will we get the thumbs up and the red carpet treatment. Please let me know how you get on.
[ add comment ] ( 2 views ) | [ 0 trackbacks ] | permalink |
( 3 / 126 )What did one of broadsheets call Mr Brown today CASH BROWN, well he is very good at giving away our very hard earned cash to our foolhardy bankers without asking for any gaurantees from them as to how they will repay our generosity, by start lending again, lets not be silly, prop up the pension funds first and repair the balance sheets and then go back and ask for a bit more and then we might, just might see our banks lending in areas where we desperately need it , commercial mortgages, loans and finance.
If we are going to get out of the current situation anytime soon our banks must support businesses and start lending and lending now.You do sometimes wonder if our bankers live on planet Zod.
Because they just do not seem to be in tune with business or the general public and the very strong feeling that the greed and manic lending of our bankers where the banking rule book of commomsense was thrown out of the window in the rush for growth.
The very heavy price for these moments of madness are felt by us at the sharp end of the stick. Now the banks have the opportunity to repair some of this damage they are failing to come to our aid.I do hope that the banks remember we have long memories and what goes around comes around.
The access to commercial mortgages, finance and business loans is something that we need today to get our businesses back on the road to recovery, no excuses Flash Gordon, if you are a leader, then please start leading today.
[ add comment ] ( 3 views ) | [ 0 trackbacks ] | permalink |
( 3 / 132 )If any one or two phrases could be gauranted to send your friendly Bank Manger into a state of shock it would be can I have some development finance, stunned silence, a bucket of cold water and a bag of tranquilizers, later upon an extended recovery
period after which the heart monitor has been removed, a garbled no creeps out from the dry lips, as the body still twitches from the assault of those deadly words, development finance.
Well wory no more Mr Bank mamager we have lots of funds and lenders for good quality cases with in some cases 100% funding proveding that you keep within 70% of GDV.Any clients that you cannot or do not wish to help please send them to us. We are conerned about your health and will happyly take this problem away for you, the queue begins here.
Interest rates start from Euro base + 2% and are adjusted to the size and risk associated with the loan and the client. There is no upper limit and we are open for business.
[ 1 comment ] ( 10 views ) | [ 0 trackbacks ] | permalink |
( 3 / 138 )In the current climate lenders find investment properties more attractive and less of a risk to lend on. The investment income must support the loan by a margin and if the tenant and the terms of the lease fit with the current lending policy you are very likely to get the nod of approval.
Loans to value of around 70% LTV is where the current market sits and coverage would be around 140% of the mortgage interest. You should be aware that most lenders are using a notional interest rate of around 4.50% to do their calculations as they do not want any nasty shocks when interest rates start to rise again. Commercial investment mortgages are around, home work and due diligence is the key to success.
[ add comment ] ( 2 views ) | [ 0 trackbacks ] | permalink |
( 3 / 120 )What lenders are very interested in is good quality investment property, let on a long term FRI lease with rent reviews and no break clauses, and a high street name as a tenant.
Life is not always like this but investment properties are attractive, and a mix or part of the above may get through if we can make a good case.
[ add comment ] ( 2 views ) | [ 0 trackbacks ] | permalink |
( 3 / 125 )Can you still get a commercial mortgage, yes it will take a lot of hard work the presentation has to be very well done and the ability to repay has to be beyond question.
Good clean cases with low loan to value, good strong accounts a sound business plan and the ability to service the loan and lenders will be interested. Good advice is essential to proper planning and presentation.
[ add comment ] ( 2 views ) | [ 0 trackbacks ] | permalink |
( 3.1 / 131 )
Calendar
