Expert offers commercial mortgage advice

21 September 2009

Written by Jeni Browne

Some of the issues involved in taking out a commercial mortgage have been discussed by a representative from a Highlands-based broker.

William Wordie, who works for Redmayne-Bentley, said that commercial property "acts as a good diversification from equities and bonds, with little correlation to either asset class".

Commenting in the Press and Journal, he claimed that this makes taking out a commercial mortgage an "attractive component" in terms of creating a balanced portfolio "for asset-allocation purposes".

Mr Wordie also advised would-be investors not to stretch themselves too much, suggesting that exposure should be limited to no more than 15 per cent of the whole portfolio and ideally placed across different sectors and geographical locations.

The expert warned that UK commercial property faces a number of challenges in the coming years due to unemployment rising and consequent tenant demand falling.

Indeed, the Office for National Statistics recently published the unemployment figures for the three months to July 2009, which showed that the jobless total had grown to 2.47 million.

Find out more on our commercial mortgages and how we can help you achieve your aims - enquire online.