News

Commercial Lending Sector Suffering

The commercial lending sector is having the same problems as the sub-prime sector. Commercial First suspended new lending last month and Interbay reduced business by lowering its loan to value to 70% of a minimum £100,000 loan.

Base Commercial Mortgages have withdrawn all facilities for adverse lending and are not accepting any new broker registrations so as to control the volume of business. The will accept applications from clean credit history borrowers and will consider adverse credit histories that can be explained.

They stated that they have good funding and want to keep their credit quality and ensure their mortgage assets remain attractive to investors. They do not want to become a company that is chosen as a lender of last resort.

Commercial land values across London are falling and West End prices are possibly to drop to around £900 per square metre as opposed to last summer’s price of £1250.