As we know all banks say that they are open for business. Saying and doing are two completely different things. Following an interesting meting this AM with a well known high street bank they reckon they are open for business and could possibly do up to 85% LTV on a commercial mortgage – for the right customer. If there is anyone out there that has been fortunate enough to obtain such funding we would love to know.
In reality obtaining a commercial mortgage will be very very difficult indeed. Long gone are the days that anyone could get up to 80-85% LTV based purely on the asset value rather than their ability to repay. Nowadays the LTV is less important and the most important aspect of any deal is the quality of the tenant and the ability to repay. Therefore if we have a blue chip business making loads of cash within undoubted serviceability needs an 85% LTV commercial mortgage then they may get it. A business that is struggling obviously will not.
The main point here is that all banks and financial institutions say that they are open for business. In reality this is a complete load of whats it. However finance companies do blow hot and cold invariably dipping their toe in and out of the market. To save a load of wasted time a good commercial finance broker will be able to find the right finance comapny pretty quickly
Tags: commercial mortgage
