'More banks' willing to lend commercial mortgages

08 October 2009

Written by Steve Olejnik

The number of top lenders that are willing to offer the necessary business mortgage finance for commercial property deals has almost doubled, new research reveals.

Savills estate agency indicated that 23 financial institutions were willing to lend more than £20 million for such deals during the second half of the year, which is 11 more firms than were prepared to lend over £25 million in the first half of 2009.

Reflecting on the data, property economist at economic research consultancy Capital Economics Kelvin Davidson said the news is "a good thing".

However, he warned that active lender numbers are "still pretty low, despite the rise".

Financial companies are still lending "much less", compared to 2006 and 2007 levels, he added, before stating that the cash they are willing to lend "comes at a higher price and on less generous terms".

Elsewhere in the commercial property market, Knight Frank has estimated that prime office rents in London's City and West End will return to growth next year, which could prove to be a lucrative move for those with commercial mortgages in the capital.

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