Asset finance leasing - XL Business finance
XL Business Finance Blog » Blog Archive » commercial mortgages

commercial mortgages

Probably worth mentioning a few words on commercial mortgages. All the banks are telling you that they are open for business. What a load of codswallop. In reality there are a very few banks skimming the cream of the deals. The banks that are lending are only lending to their own customers providing you have a large deposit, profitable and have a very strong balance sheet.  The government owned banks are lending a bit but i’m sure they dont really want to be lending.  There are all kind of rumours going around as to why they are not lending. Is it because they need the money from the govermenment to strengthen their balance sheets or is it becuase they are playing on the bond makets as someone suggested to me recently? Probably because we are in a recession and they dont want to.

The chances of getting a commercial mortgage from a bank other than the one you bank with are next to nothing. If your business is strong enough to raise the eyebrows of another bank be prepared to have to move your banking arrangements lock stock and barrel in order to get the funding. The most important aspect of the transaction will be the serviceability of the transaction. Even if there is a very low loan to value it doesn’t automatically mean an application will be accepted.

Even the near prime and sub prime  unders that once upon a time would lend up to 80% of the valuation are closely scrutinising the serviceability of the transaction. How times have changed!

Tags:

Comments are closed.


 
 
 

XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

Manchester, Liverpool, Leeds, Preston, Sheffield, Stoke, Merseyside, Lancashire, Cheshire, Staffordshire