http://www.acommercialmortgage4you.co.uk/blog/index.php Copyright 2010, Michael Alexander Michael Alexander en-US SPHPBLOG 0.5.1 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100216-175537
Its come at a very good time as we wondering when commercial mortgages would ever be the same again. But with spring jusr around the corner it could not have come at a more fitting time. There has been a very small change in attitude by the lenders as they flex their financial muscles and tentively dip their toes in the lending waters.

You always want to be positive because anything else is a waste of time, but it has been a very long hard slog and a double dip in the market would be more than most businesses could cope with. So we remain positivewe ignore all the clowns trying to talk up the market and wait for those little signs that show things maybe on the change.I do not want to recall how many clients we have had to turn away when in better times we could have helped them, but like the snow drops that are just starting to show commercial mortgages Finance and business loans may just start to get easier to arrange.

You cannot touch it you cannot feel it but that smell in the air that only our finely tunes financial senses pick up make us aware underwriting and attitudes are changing. You just get that feeling that they want to lend, rather than finding different ways of saying no to your commercial mortgage application.

Michael Alexander acommercialmortgage4you.co.uk]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100216-175537 Michael Alexander Tue, 16 Feb 2010 17:55:37 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=10&m=02&entry=entry100216-175537 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100208-174231
I am just waiting for Gordon Flash Brown to take some credit for this as he clutches onto any positive sign of a revival in our fortunes however small. But is this a real sign that the investors are coming back and willing to pay over the guide price for investment property if the covenant is a strong one.

Well the good signs are there judging by our experiance in the current market, all we need to help the market recover is the dreaded credit committee to come down from Mars or planet Zod where they apparently live and breath the rarified air in space and dream up how many time they can move the goal post before we hit the back of the net. Its a great shame one of this rare breed of men is not a premiership goalkeeper and could play for my team West Ham we would keep a clean sheet every week and we might just stay up.

The bottom line is there is a very small change in attitude among our investors and that just maybe the chink of light in the dark sky that we need to see to signal that better times are ahead.Now Gordon just blow into the bankers ears, start lending now chaps and we might just turn the commercial property market around sooner than later.

Michael Alexander acommercialmortgage4you.co.uk]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100208-174231 Michael Alexander Mon, 08 Feb 2010 17:42:31 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=10&m=02&entry=entry100208-174231 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100204-173622
We have just crawled out, or so they tell us,of vthe recession, but it is so fragile that a small puff of wind could blow us back again because nobody apart from Gordon Brown beliefs it. For us to recover we have to start to feel good about ourselves and our future prospects.Its going to be some time yet before we get that feel good factor and we feel confident about spending money, and its that one small thing that as they say makes the world go around.

The main banks have made borrowing very slightly easier but the change is so small that you would neeed a very sophisticated bit of equipment to recored the change.

Businesses need access to funds to invest in their company, to expand, buy new machinery, emply more staff, move to larger premises, the list goes on but without the available funds it cannot happen. I know from my exposure to the market how frustrated clients are with their banks, who have forgotten what banks are there for, to LEND.

The access to commercial mortgages,finance and business loans is so important to the future growth of the country let alone the individual. As previous market dips should have told us the recovery starts at the bottom and we need our small to medium sized businesses to pick up the baton and start moving forward with the help of our banks.

If the doors to commercial mortgages opened tommorrow you would see a very big smile on lots of faces and the wheels would start to turn.

Michael Alexander acommercialmortgage4you.co.uk]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100204-173622 Michael Alexander Thu, 04 Feb 2010 17:36:22 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=10&m=02&entry=entry100204-173622 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100119-182313
Instead of having a sensible discussion about how we can take the UK out of the DO DO, that we find ourselves in and how to make sure that our grandchildren are not left to repay our debts, our government have now set out their market stall, with fantasy stories about how they are best placed to get us out of the brownstuff and into the sunshine without any pain.

Well if you are that clever why we are in this mess now I ask myself. The other crowd may not be covering themselves in glory at present, but boy do we need a change of direction away from this benefit culture.

The sad thing is that despite all the problems that the last two years have brought us, clients are as keen as ever to grow their businesses, but need help and direction from the top. It still feels rather strange that the having been bailed out by the British public the Banks are unwilling to repay any of that debt by helping businesses to recover and go forward.

I think that it was dear old Winnie who said the further backward you can look the farther forward you can see. What history tells us is that recovery normally starts from the small to medium sized businesses who have taken the opportunity to slim down and get lean and mean in the recession in order that they are well placed to take advantage when the up turn in the market comes along.

We need to be helping our Small to Medium sized businesses because that’s where our recovery will start and we need to get our people back to work paying tax and NI, they are no good to us or themselves on benefits. If only our Banks could work in tandem with the government to open the funding lines to commercial mortgages, commercial finance and business banking, we could start turning the corner now.

There is no lack of enthusiasm in the business community, it’s very positive, but to survive we have all had to make sacrifices and cutbacks in our business and home lives. What we need now is a shot in the arm to kick start the economy and some real help from our Bankers to oil the wheels of progress. What our Banks do not seem to have taken on board is the real bitter taste we have in our mouths at what we have as a nation have had to give our Banks in order that they would survive, due entirely to the Banks previous lending policy which was a bonus driven culture in the rush for growth, where common sense and basic lending principals were ignored.

The mention of the large bonuses which some banks have indicated they will be paying their staff is like stab in the back in the face of the money that they have had from us to enable them to survive, and they make a very quick return to the bonus culture which appeared to be at the very heart of the downfall of the Banking system.

When sanity returns to lending and the Banks realize they have a duty to help in the recovery, we will be on the road to growth and access to commercial lending will be there to help our businesses to start the long process of a return to black balance sheets and a smile on our faces.

Michael Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry100119-182313 Michael Alexander Tue, 19 Jan 2010 18:23:13 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=10&m=01&entry=entry100119-182313 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091118-175913
With that in mind how do we see the market in the short term. With the Banks still holding onto their cash we cannot see any real changes in the immediate future the mind says yes but the body is unwilling to part with the cash.
The demand is certainly there and our own experience in the current market reflects the interest that clients have in purchasing Commercial Property to run their own business or as part of their investment portfolio.

We have to remain positive that we can get the Banks to say yes and of course we do win a great deal of the battles but it would be nice to say yes to a lot more clients who should have the benefit of Commercial Finance to take their business forward or to build up a portfolio. What we are not seeing is the demand for Commercial Mortgages with self certification of income or with bad credit. Is it that these clients have just given up or has the cream risen to the top and what we are now seeing are clients who have done their due diligence and who deserve help because they have a viable business plan.


We are certainly having to work that much harder to help clients and to make the best presentation possible to the lenders to stand any real chance of success with our application. Gone are the days when the back of a FAG packet presentation together with a quick pint and a chease sandwich in the saloon bar would bring success. Our friendly bank manager has long gone to be replaced with a body that just wants to sell you a product in order to meet targets.

As an adviser we need friends in the industry and good contacts are worth there weight in gold dust as we try to extract the best deal that we can for our client with someone who wants our business and trusts us to not to introduce poor quality business, because if we break that bond of trust we will not be welcome at the breakfast table. We need to spend time cultivating good Commercial Mortgage contacts and to network as much as possible, its amazing what you can achieve when have some good friends in the business and it takes time to buils up a good circle of contacts and networking is a great way of making it all happen.

Michael Alexander acommercialmortgage4you.co.uk



]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091118-175913 Michael Alexander Wed, 18 Nov 2009 17:59:13 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=11&entry=entry091118-175913 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091105-161331
Does all this mean that arranging a Commercial Mortgage will be that much easier in the light of the extra cash being put into the system, well you would think so and what a nice way to repay the general public who will own around 84% of the bank.

I think that we will find on Monday morning when we go cap in hand to these banks asking for help it will be the same short sharp NO that we got last week, after all they do have to keep some of the money back to pay the bonuses that have has such bad publicity and quite rightly so.

The sad thing is there is no quick fix we have mortgaged away the future of our children in supporting the banks and just how quickly will this very conveniently be swept under the carpet, far quicker than we could ever imagine.

If we the general public whose hard earned cash has been pumped into the Banks could the benefits of this action in our everyday lives, there would be far more understanding of the current position. The Banks have been bailed out seem to want to return to the same position that they were in prior to the downturn and fail to recognise the anger that is felt by the public at the bonus culture and the very high charges that we now have to pay for our day to day Banking.


If our Banks could see beyond the next bonus, they would be trying to repair the very serious loss of confidence of the public in the Banking system and the rewards that seem to go hand in hand with failure.

Lets try a very different approach and see how the public react, START LENDING AGAIN TO THE GOOD CLIENTS WHO WANT TO GROW THEIR BUSINESS AND INVEST IN THEIR FUTURES AND WE CANNOT DO IT WITHOUT ACCESS TO COMMERCIAL MORTGAGES FINANCE AND BUSINESS LOANS. SIMPLES.

Michael Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091105-161331 Michael Alexander Thu, 05 Nov 2009 16:13:31 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=11&entry=entry091105-161331 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091104-174237
There I was having this very pleasant dream and looking forward to the start of a new day and all the problems and issues that have to be solved during the course of the day when I was rudely woken up by our early morning paper boy bringing the written joys of the day.

Well before I got through my first cup of coffee the headlines of the financial pages screamed at me that it had all been a very pleasant dream on planet Zod and now wake up and smell the coffee. The Banks and other lenders do have the money they just do not want to lend it, and if they have their arms twisted they will certainly make us pay for the privilege

When is this likely to change, will it be anytime soon, I think not. The falling housing market has almost bottomed. out, and we may have that strange bouncing effect over the early part of next year until the market becomes positive and at that point if lenders do not start to lend in earnest we are in big trouble.

As a nation we have come to accept where we are and how we got there, but the general public will not go on biting the bullet, and there is only so many times you can pull your belt in one more notch. For us to go forward we can only do this in the residential housing market and in the Commercial Mortgage market if we have the back up of the banking system. The system has failed us and we have been in the longest recession that we have ever had, and this is not down to the man in the street. Our so called leaders have not risen to the challenge, and seem incapable of laying down a set of rules that would apply to any other business, you will not be rewarded for failure, and you are expected to work hard, that is your job. A bonus is for doing something really out of the ordinary, not for just doing what you are employed to do.

We really need to see the start of the flow of mortgage funds both residential and Commercial, it cannot come soon enough and what a smile it will put on our faces. I still remember 2nd of January 1996 going into the office thinking is this going to be another year of toil and strife, the phone rang at 9pm sharp and did not stop until Christmas, the housing market slump was over. What would I give for the same thing to happen in 2010 ?

Michael Alexander acommercialmortgage4you.co.uk


]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091104-174237 Michael Alexander Wed, 04 Nov 2009 17:42:37 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=11&entry=entry091104-174237 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091103-180315 The question is does this cast a further shadow over the mortgage market? To a certain extent the answer is inevitably ’yes’, as any economic failings could spell even greater problems in regards to funding and credit.
However, it’s not all doom and gloom. We are seeing a few exclusive and semi-exclusive products creep back into the more mainstream and even specialist markets which is a positive sign. One specialist market that has suffered badly over the past couple of years through falling values and lending restrictions is the commercial property market but it appears to be finally enjoying a welcome resurgence according to recent statistics.
According to Investment Property Databank Ltd (IPD), commercial property values in the UK, Europe’s largest market for real-estate investment, have risen at their fastest pace in more than three years.
The value of offices, stores and warehouses climbed 1.1% in September from the previous month, according to an index produced by the London-based research company, which represents the largest monthly increase since June 2006.
Other new research seems to back up this new found positivity. A report from Savills suggests that increasing numbers of banks are willing to lend sums of more than £20 million to commercial property investors. The report identified 23 banks in the £20 million and over lending category.
Commenting on the report William Newsom, Savills UK head of valuation, said: "In March when we conducted our last survey, we weren’t aware of any banks prepared to lend above £100 million on their own, but today perhaps half a dozen are prepared to do so."
It was also interesting to read in a recent Financial Times article that investment levels in London are currently higher than the long-term average, with foreign investors and funds eager to snap up prime properties as the market bottoms out.
But despite these relatively high levels of optimism about future growth, 2009 thus far has proved tough going for the commercial market. This is illustrated by an overwhelming 77% of respondents to the Forum of Private Business (FPB) latest quarterly referendum survey which reports seeing the terms and conditions of lending deteriorate in the last year, with many being forced to provide more security to cover their current lending levels.
Just 4% of FPB members said they had seen access to working capital improve in 2009, with 58% believing it had worsened. Of those surveyed, 65% said it was harder to access finance for growth and 68% said the cost of finance had increased.
When asked how the issue of finance could be improved, 36% of small business owners said they wanted to see a reduction in the cost of lending. Further, 27% said greater flexibility in negotiating and adapting terms and conditions to meet the changing needs of their business would be welcome.
The real route to recovery of the UK economy may lay with the availability of proper funding lines to business which at the moment is being strangled by the lack of funds. This is one of the reasons why we have seen so many short term funding providers spring up when in the past bridging has always been the ugly duckling of lending now she is the white swan with funds being made available to areas of the market that the traditional lenders have ear marked as bad news. Short term lenders have grasped the opportunity with both hands and have kept the market alive with their entrepreneurial sprit and willingness to lend where others fear to tread. Lets hope in the markets ahead short term lenders will adapt and find a new niche in the market, Tiuta being one that looks for innovation in lending.

]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091103-180315 Michael Alexander Tue, 03 Nov 2009 18:03:15 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=11&entry=entry091103-180315 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091103-154537
Please tell me why we did not let the banks stay as they were.. After all they have been around in one form or another for the last two or three hundred years and if it had not been for the greed at the top which unfortunately filtered down to the shop floor where lending at all costs became the target to earn the bonuses we all know about.

If the FSA and the government had been totally ruthless, all of the rotten apples at the top of the tree would have been lopped off and the remaining staff would have been reminded about their responsibilities with new CEO’s who knew how to run a bank and any future lending would have been to clients who stood up to the normal tests of being able to service the debt.

With any down turn in the market where staff is moved on, it always seems to be the staff at the top where the high salaries are being paid who go first. If they are not up to the job then that is the right course of action, but experience is so vital when the recovery comes along and the banks get busy. Without the experienced staff the new blood cannot cope and mistakes are made. How many times must we repeat our mistakes before we look back at what history tells us before we make decisions that can be so damaging to the future growth of financial services.

The next real question is are these new banks going to make things so much better overnight, in short no.The big banks have the funds and the knowledge to start lending now and get the economy moving tomorrow, will this happen, it depends on just how big a stick the government hold and are they prepared to use it. It seems that the banks went cap in hand to the government who listened and came up with our money.

Now we are going to the banks cap in hand to say will you lend some of the money we gave you to stop you going under , and the response is a big NO, fine please give us back all the money we gave you and we will start our own banks and run them as banks should be run.

For the UK to still be in recession is a national disgrace and the banks have a lot to answer for, and it should be them leading the by trying to help those businesses who can make a real difference to the economy and to encourage new businesses without which we may be stuck here for some time. The Phoenix needs to rise from the ashes and to create a path to recovery that we can all follow.

Michael Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091103-154537 Michael Alexander Tue, 03 Nov 2009 15:45:37 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=11&entry=entry091103-154537 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091020-153311 With Commercial Mortgage lenders still very much cherry picking what they will and will not lend on, and then increasing the interest rate margins together with an increased fee structure thank god that we still seem to have short term lenders who if anything have become more competitive on interest rates and charges.

This is not quite what we expect from the this sector of the market when we look back prior to the down turn in the Commercial Property Market where bridging and short term lenders were like drinking in the last chance Saloon, if you did get served the drink it was pretty foul tasting stuff and very expensive.

What the downturn in the market has done is create a niche market for this product, and thank fully there seems to be funds available from a number of lenders with terms that have become more attractive as the Commercial Mortgage drought shows no real signs of improvement.

It is also very noticeable that short term lending which started at one day has now with some providers stretched to 365 days. Developers would have turned their noses up previously at bridging, but have now come to realize that where you are buying property way below the true market value, you can afford to spend a little more on the cost side and still have a very nice profit margin.


These are testing times and it will be very interesting to see how these short term products develop in a changing market as we come out of the downturn where property developers have normal funding available, speed and a very minimum of references has always been the key to bridging and not losing that very important deal where time was in short supply.

Michael Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091020-153311 Michael Alexander Tue, 20 Oct 2009 14:33:11 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=10&entry=entry091020-153311 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091016-142629
When did all this happen, I must check that bottle of wine I opened last night to see if it had any very special additives in it. On one hand we have the growing queue at the unemployment office, Lloyds Bank selling off 4 bn in securitised mortgages and now Nationwide securitising some of their loans. The Banks and Building Societies are not lending beyond 90 % LTV even if you are 100% squeaky clean, and if have had any sort of minor blip on your payment profile do not expect to raise more than 80% LTV.

Does this paint the picture to you of the climate of recovery, particularly when lenders are so wary of any risk in their commercial lending, which does not bode well for any sort of recovery in the building industry upon which we rely so heavily?

We in financial services remain as positive as we can in very difficult circumstances and would we miss any realistic signs that lenders wanted to lend, I do not think so.

The pent up demand of first time buyers and those who want to move house for various reasons is massive particularly where we are only able to help around 15/20 % of the clients who enquire, the demand will grow until lenders start to open the doors to the vaults and satisfy the band of discontented potential buyers, and that’s when house prices will take off.

With Commercial Mortgages it is a very similar story with lenders being very picky with what they will lend on and the way in which lenders are increasing their charges both in the interest rate margins and the charges they make to lend money. We are paying a very high price for the BANKS PREVIOUS FOLLY IN TRYING TO GROW AT AN UNREALISTIC RATE WITH NO DUE DILIGENCE AND COMONSENCE BEING IGNORED IN THE RUSH FOR GROWTH.

There is a very long way to go before we can have any real confidence in the economy making a full recovery and we can still have a double bounce to deal with. We should all remain positive but trying to talk up the market when it is not borne out in fact does not help anyone as the banking sector like the politicians have lost the confidence of the general public and we as advisers should talk in plain English and do our best to get the confidence of the public at large back in financial services.

Michael Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091016-142629 Michael Alexander Fri, 16 Oct 2009 13:26:29 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=10&entry=entry091016-142629 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091008-175221
The Footsie 100 still flatters to deceive with strong growth but very little to back it up. The estate agents and some of our high street lenders would have us believe that the residential market has been positive for some months despite surveyors still wearing their brown trousers when valuing property.

If you believe the rating agency Fitch we still have another 13% or there abouts for the property markets to fall before it bottoms out. As it was Fitch who blew the whistle on the sub prime packaged mortgages in the USA which started the property down turn their opinion must be respected even if we do not agree with it.

With Standard Life stating this week that they would be relaxing some of their redemption penalties on withdrawals from their property fund it must demonstrate that they feel fairly confident about the future of the commercial property market. When a major player like Standard Life who have a massive interest in commercial property give a clear sign that they feel the market may be a little more positive we have to listen.

There will not be a morning when we wake up the birds are singing, the sun is shining and we have just won the lottery and the commercial property market has suddenly gone positive. History tells us that the market will bounce along the bottom for a while until it bottoms out and then we start to see that little miracle as we get a very small positive growth.

With the pent up demand that we have, as soon as lenders decide to lend again when we are into a positive area the market will take off for 12 months and then settle down again for what we hope is another twenty years of growth before we are back in this mess again, but next time around we will be that might wiser and we will not get caught, will we?

Our economy needs a vibrant residential and commercial property market, and how we have wished that it would come back a lot sooner than we anticipate, which is next spring, please god.

Michael Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091008-175221 Michael Alexander Thu, 08 Oct 2009 16:52:21 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=10&entry=entry091008-175221 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091008-162624 The Mayor of London used his considerable call in powers, granted in April 2008, for the first time to take charge of the Columbus Tower planning decision after London Borough of Tower Hamlets rejected it in August.Boris being Boris was not going to let this prime development slip through his fingers.
Conditions attached to the application will see the developer pay £4m towards Crossrail, £1m towards affordable housing and more than £2m to community schemes not quite sure what planet Tower Hamlets are on but was this a development that ticked all the righ boxes and makes a massive contribution towards Crossrail.
The scheme will provide 334,000 sq ft of offices, a 197-bedroom hotel and 74 apartments.
Johnson said: “I believe the application will not only strengthen the success story of the Isle of Dogs, but will be hugely beneficial to the whole of London.
“As well as being suited to the Canary Wharf district with its distinctive tall buildings, the overall size of the development means that it will deliver a huge contribution to the cost of Crossrail, which is central to the continued success and prosperity of both Canary Wharf and the entire capital.
“Considerable sums will also be invested to bring lasting benefits to the local community and therefore I have no doubt that this development must be allowed to go ahead.”
You do have to question whether our previous Mayor would have been so bold to have forced this development through as not to be dictated to by planners who may not always have the future of London at heart, well done Boris.



Michaek Alexander acommercialmortgage4you.co.uk




]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091008-162624 Michael Alexander Thu, 08 Oct 2009 15:26:24 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=10&entry=entry091008-162624 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091006-162543
There is no indication what part of the UK is going up each month, and if this the case why are the surveyors not reflecting this positive change in their valuations. Maybe because the surveyors have got more sense than to get caught up with the hype in trying to talk up the market when the demand is most certainly there, but if the lenders are not lending, not much will change.

Oh god I do hate doom and gloom but when you are saying no to 8 out of ten mortgage enquiries because we cannot place them due to lending restrictions talk of rising prices is just that talk with no substance. The pent up demand for residential mortgages is horrendous, and when the lenders doors do open just a little to allow a shaft of lending sunlight the market will almost certainly take off as it did in 1996 following the last downturn. It will settle down again after the honeymoon period, but that first year is likely to see some real changes in property values, and boy do we need it.

The worry is at present that having seen a real positive run on the Footsie 100 coming from 3800 to around 5200, are we going to see the dead cat bounce with a double dip in 2010. The markets seem to be very positive when there is nothing to back up this rise in the stock markets. To over cook the market now would be a disaster; we need a nice slow recovery with no nasty dips to spoil our fun.

The FSA. are not helping our cause with the new banking rules which would require lenders to stockpile up to £106bn of extra government bonds, and to reduce the reliance on short term funding. With the banks not talking or trusting each other short term funding is not likely to be an option in today’s market.

In truth we do not expect lending to change in 2009 but it will be a very gloomy year in 2010 if the brakes do not come off lending. We need to see funds being made available for residential mortgages, commercial mortgages, commercial finance, and business loans, the knock on effect to the retail sector that rely on a healthy property market to sell the associated products would be massive. The building industry have had a long holiday and it would be nice to see the sites coming alive again, with the builders bums that we all love to laugh about, they will be a welcome sight.

Banks and lenders may have to be retrained as they have become so used to finding every which way to say no to our application for a commercial mortgage and finance that smiles may return to banking, because they can now say yes.

Michael J Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091006-162543 Michael Alexander Tue, 06 Oct 2009 15:25:43 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=10&entry=entry091006-162543 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091002-140141
Well despite some rumblings in the Press from lenders who should know better, that the residential market was on the up, (if so lenders then why are you not instructing the surveyors to start valuing the properties up, instead of looking for any reason to down value.) Unless the words of wisdom come from the very top in big bold letters, are surveyors going to stick their collective necks out and kick-start the market all on their own. I do not think so, as too many of them remember the last recession, and being sued for an optimistic valuation when the client defaulted is a costly exercise, and not one any surveyor would wish to repeat.

We do get fed up with saying no to clients when in normal circumstances we would have said yes with confidence that we would find a lender who would help us and the client. The standard of service given by some of our high street lenders beggars belief, and you have to wonder how these so called BDMs will cope when they get busy. If you are giving a very poor level of service now when you spend most of your time saying no, what will happen when you start saying yes?

The crystal ball we call the market, indicates that we should be going positive in 2010, and the knock on effect in the economy will be very welcome. So you lenders and banks let’s have the application forms at the ready with some half decent lending criteria, together with surveyors who are allowed to value up and off we go again. Lunch hours will return employees will feel that they can take a holiday or go sick only to see the dreaded P45 awaiting their return.

A smile will return to the commercial lending area and IFA’s like me will enjoy coming into work in the morning because we know we can make a difference to client’s lives when we have access to commercial mortgages, commercial finance and business loans. A small request to the powers that be, but what a difference we as professionals can make when we have all the tools of our trade at our disposal.


Michael J Alexander acommercialmortgage4you.co.uk.
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry091002-140141 Michael Alexander Fri, 02 Oct 2009 13:01:41 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=10&entry=entry091002-140141 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090911-111239
Meanwhile down here on planet earth first time buyers who have a 100% squeaky clean credit record can only get up to a 90% LTV mortgage and with a minor blip on the credit file 80% LTV.On the commercial front most lenders want at least 30% deposit going in from the client and more in most circumstances.

If this seems to be the climate in which house prices can rise who is kidding whom. Yes we would all like to talk up the market and when the market has bottomed out and we go into positive growth I will be more than happy to play my part in talking up the market.

But let us talk with honesty and clarity, the overall property market is still falling but has slowed down and should bottom out by the end of this year with any luck. But the major fly in the ointment is the lack of funding in both the residential and commercial markets. So you all you lenders stop talking rubbish and mudding the waters start lending now and the market will recover sooner than later.

We do not want a return to lending at any cost, and to every Tom Dick and Harriett who should have never had a mortgage in the first place. We need to get back to lending at 95% LTV and let’s have a bit of commonsense in the underwriting; just because someone paid their credit card one day late does not make them a criminal in lending terms.

Clients who do not pay and go into debt management, or into an IVA or declare themselves bankrupt, or run up a stream of CCJs, must understand that they cannot come back into the market and be treated like any other normal client. We have made it all too easy now for clients to walk away from their responsibilities and this culture has to change in order that the good clients are not being penalized.

So Mr Brown if you want to get back into power may I suggest that a great deal of your energy should be spent in trying to get lenders to lend particularly those to whom owe the country their very existence. Mortgages, Commercial Mortgages Commercial Finance, and Business Loans, there you are Mr Brown not too difficult is it.

Michael J Alexander acommercialmortage4you.co.uk.
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090911-111239 Michael Alexander Fri, 11 Sep 2009 10:12:39 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=09&entry=entry090911-111239 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090910-134312 On a day when the Bank of England hold the base rate at 0.5% for the sixth successive month in a row, anyone looking to purchase residential or commercial property must be looking at the most attractive period in which to buy within the last 20 years.

With low interest rates and with no sign of them going up in the immediate future and with Redrow reporting the worst trading results in the company’s history, what a fantastic opportunity to get into the property market.

Even one of the friendly Dragons from Dragons den have announced their interest in commercial property and stated that the time was right to get on board before prices started to rise and yields began to fall.

Brent Cross have finalised an agreement this week which will see £1bn of funds required to create the new north west London town centre. So we have the will and the demand, what’s the problem. Our lenders are the problem they just do not want to lend, and without them any chance of an early recovery are on hold. If you are reading this Mr Brown and Mr Darling, please get your big stick out and give the banking boys some thing to think about, if they do not start lending soon there will not be anybody left to lend to.
]]> http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090910-134312 Michael Alexander Thu, 10 Sep 2009 12:43:12 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=09&entry=entry090910-134312 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090909-162721 .Following a good day on the Footsie 100 we have broken the 5000 points barrier for the first time since we went into recession which we hope bodes well for the future as investors come back into the market with some confidence that gains are to be made

Some of this new found enthusiasm is no doubt due to the possible sale of Cadburys to Kraft which would make two global brands even bigger and would offer economies of scale and open up new markets as each brand feeds off the other markets and expertise.

Where does all this activity on the stock exchange help us in the commercial property and finance markets? Well one word which can bring about a complete change of attitude by lenders which then feeds through into property investors and clients who wish to move to larger premises and buy the freehold, its called CONFIDENCE.

Can one word have so much power, you can just bet your last shilling on it. When the lenders have confidence they will start to lend and the wheels of business start to turn again, because what lenders now see as risk, starts to disappear when property prices start to rise and their equity in property increases.



Property prices are still falling but not at the same rate as we have had over the last two years. We expect that prices will stabilize at the end of this year and maybe into spring 2010. But after that history tells us that prices bounce along the bottom for two or three months and then they start to climb. When that happens and the confidence is back there will be a real explosion in prices held back only by the lack of quality property on the market and the availability of funds.

With a fair wind, the mainsail and spinnaker out we should start to see the return of COMMERCIAL MORTGAGES, COMMERCIAL FINANCE AND BUSINESS LOANS, do I hear cries of shock and horror, the Banks are lending again, well maybe but not just yet

Michael J Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090909-162721 Michael Alexander Wed, 09 Sep 2009 15:27:21 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=09&entry=entry090909-162721 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090908-172941 Have we seen a little chink of light coming through the Iron Curtain which seems like the cold war in commercial mortgages, well if there is a chink of light it’s being very well hidden, because as a commercial mortgage broker someone up there appears to be turning the screw even tighter?

The real activity in the commercial property markets seems to come from cash rich clients who do not need a mortgage to enable them to purchase, and this would again seem to be the same in the residential market in and around London.

It is in everybody’s interests for the property markets to recover, and yet the Banks are still unwilling to start lending which would in the long term help themselves as they would benefit from rising prices which would increase the equity in property and bring down the Banks exposure to risk.

Having thrown money at clients who should have never been given the facilities in the first place the Banks still cannot see how they can help themselves by aiding the recovery by lending. Lending to clients with a bad credit record and those who have not serviced their commitments in the past is always a risk and this exposure to the dog end of the market should have been limited at best if not avoided like the plague.


Hindsight is a wonderful thing and as Winston Churchill once said the further you look back the further forward you can see, wise words from the great man. History tells so much, if a client is not paying their existing mortgage, credit cards and loans, what makes you think that by lending them more money at a higher interest rate they will suddenly have a lifestyle change and start paying. What do they say about leopards?

What we need is a new breed of Bank managers who are there to help and advise and to lend where it is appropriate. Bankers who lend merely to boost up their lending and to qualify for a large bonus and get promotion do not help the bank or the client. We must have access to commercial mortgages, commercial finance, and business loans because without them there will be no recovery

Michael J Alexander acommercialmortgage4you.co.uk
]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090908-172941 Michael Alexander Tue, 08 Sep 2009 16:29:41 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=09&entry=entry090908-172941 http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090811-152054 However, the flood of new investors who have embraced the auction house as the place to snap up a bargain, have been warned that bidding on these distressed properties is not always the simplest way to bag a bargain unless you are a cash buyer. With banks and building societies, who can take months to process mortgage applications, the need for speed and a less formal approach to lending is essential if clients want to take advantage of the opportunities that are now in abundance to buy property at well below market value.

Bridging lenders have reported that banks are becoming more and more hesitant to lend on properties sold at auctions, as they have often been left uninhabited or require some renovation work, causing them to be down valued by cautious valuers. This is where the short term lenders come into their own as the facility allows the client to purchase and renovate the property and either sell on or refinance normally after six months.

The other advantage of using short term finance is that the loan is secured against the valuation and not the purchase price which does allow a degree of flexibility when looking at the various ways of raising funds.

Bridging finance has always been linked to buying property at auction, but as banks increasingly drag their heels over new lending, short term loans have taken on an even more central role in the auction house. The loan to value and the exit route are the principal criteria in short term finance with a far more relaxed approach to clients who may have had the odd blip in their credit profile.

Maeve Ward, from bridging lender Link Lending, says: “We receive around 25 enquiries a week from investors looking to purchase properties at auction, as traditional lenders do not have any real enthusiasm for clients who buy at auction assuming that they have the money and are willing to lend in normal circumstances, and are then often unable to process a mortgage application in the 14-28 days that buyers are given to complete the transaction.

“Most investors will look at the auction catalogue before the date of the auction and do their research, setting themselves a maximum threshold before coming to us. We can then provide them a quote in principle, which they take to the auction giving both the auctioneers & the client the confidence that the transaction is going to complete subject to satisfying all underwriting terms.

“The main benefit of using bridging finance in buying an auction property is speed. It will never be the cheapest option, but one which can be commercially correct in securing an opportunity in the short term which might otherwise have been lost.”

We have to ask ourselves where we would be with out the tool in our box of short term finance to survive in this very difficult market place. Traditional lending in some areas has all but died up and access to what has been seen as instant access to funds without the long drawn out process of traditional funding has been a godsend. It will be very interesting to see what happens when we come out of the credit crunch will this product need rebranding, or can it survive.

Michael Alexander acommercialmortgage4you.co.uk


]]> Commercial Mortgages http://www.acommercialmortgage4you.co.uk/blog/index.php?entry=entry090811-152054 Michael Alexander Tue, 11 Aug 2009 14:20:54 GMT http://www.acommercialmortgage4you.co.uk/blog/comments.php?y=09&m=08&entry=entry090811-152054