Commercial mortgage demand on the rise - commercial mortgages

28 September 2007

A new study has revealed that the demand for commercial mortgages is on the increase due to increased confidence in the sector.

Two thirds of brokers told the Commercial First study that demand had risen during the first six months of the year, with almost three quarters predicting that it will rise even further over the next six month period.

Firms and landlords looking for such products are also seen to be increasingly likely to opt for a fixed-rate deal, the study added, with over half of all respondents saying that they saw demand for such mortgages increase during the first half of the year.

"Broker confidence in the growth of the commercial mortgage marketplace is very buoyant," advised Stephen Johnson, sales and marketing director at Commercial First.

The findings come during a positive week for commercial property, with the head of British Land saying that he envisaged no major correction within the sector, and others advising that the credit squeeze could help bolster demand in London due to fewer projects now being scheduled to be built.