In the current market loans to value have been squeezed as lenders are un-willing to accept maximum exposure on certain types of lending and anything that has an element of risk will not get past the dreaded credit committee.
For those looking for commercial finance on commercial property
On commercial lending the average loan to value is 70% LTV with only one lender who would consider 80% LTV for a client buying to occupy and run their own business from the premises. A far cry from the days when we could arrange up to 85% LTV for self certification of income cases with adverse credit.
For buy to let cases the maximum is 75% LTV and for portfolio borrowing nearer 70%LTV. However if you look at the terms on offer, lenders are pricing the schemes to make 60% LTV far more attractive to clients. Risk is the King in this market, lower risk, less exposure, a better deal on the table.
With bridging and short term finance, 70% LTV is about as far as the lenders want to go unless its blue chip with a very clearly defined exit route, in the very near future.
Watch this space, and lets hope for better things to come in the not to distant future, please.