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'FINANCIAL STABILITY REPORT’ HIGHLIGHTS RISKS TO COMMERCIAL PROPERTY MARKET

Time to review your Mortgage Rate

‘FINANCIAL STABILITY REPORT’ HIGHLIGHTS RISKS TO COMMERCIAL PROPERTY MARKET

According to the recent Bank of England’s (BoE) Financial Stability report: “There is a risk of further adjustment in the commercial real estate market that could create financial stability risks, given the reliance of the market on inflows of foreign capital and, in som e segments, stretched valuations.”

It went on to highlight that although it believed that the market as a whole was stabilising, certain segments, particularly the London market, appeared to be under greater pressure than others.

With open-ended funds somewhat vulnerable to a reduction in demand from foreign investors, the recent fall in the value of sterling has managed to continue to attract foreign investment in the sector.

The average house price stands at £216,674 and the annual house price rise is 6.9%; Home-owner and buy-to-let remortgage lending is running at strongest level since 2009. There are many new deals on the market so now is the perfect time to consider re-mortgaging, particularly if you are on a Standard Variable Rate (SAR). There are also plenty of niche lenders looking to lend commercial finance and give business lonas, don't rely on the banks to help you though! A specialist commercial mortgage broker who deals with niche lenders may get you much a better deal where a bank fails to get you any positive decisions at all.