Business
Mortgage Information
Generally
commercial lending is not regulated by the FSA
however this may not be the case in the future.
Like the UK residential market many banks and
specialist lenders may potentially lend to businesses
commercial finance.
The
potential mortgagee will have certain criteria
to fulfil in order to satisfy the underwriters.
First the mortgage will have a decent sized
deposit placed against it. The loan will have
to be serviced with adequate income which will
be proven. The business and owner will have
a good credit track record and ideally a history
of trading that would have to be demonstrated.
This
is good for competition and criteria. However
because the products and number of lenders are
high then support from a broker would be prudent.
The
recent credit crisis has placed pressure on
banks and this has effected their ability to
lend with confidence. A lack of liquidity in
the lending market place has made lenders nervous.
The effect has meant many products have been
withdrawn through the fear over whether debts
can be serviced. Arrears are increasing and
property values are falling.
Lenders
are playing it save and mainly lending to lower
risk cases. The Bank of England has been in
discussions with lenders to see ways that the
market can stabilise and move forward in these
difficult times.
The US crisis has had a big impact on the UK
lenders for commercial mortgages some of the
lenders here are also US backed.
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