The commercial property market, like the residential market, has faced a challenging 2023. However there are reasons to be positive as we look ahead to 2024.
First, the market is becoming more competitive, rates have started to drop and we have seen the return of lenders like Interbay and Allica recover their lending appetite. For example. Allica has reduced its arrangement fee from 2% to 1.5%. Lenders have also loosened their criteria to take on more business and applications that may have come under scrutiny a few months ago are now being more readily accepted.
A good example of a progessive criteria change is Shawbrook Bank, which has returned to the market and is able to provide a minimum loan size of £250,000 on commercial and semi-commercial deals.
As always with commercial property, not all sectors behave the same and some are experiencing greater demand from tenants, with a more positive outlook, than others. However, whatever asset your client is looking to invest in, obtaining the most suitable and competitive mortgage finance to keep outgoings down is always paramount.
At Brightstar, we have access to a number of lenders that have increased their appetite and are able to work with them on an individual basis to ensure the best terms for your clients.
If you have clients who are looking to expand their portfolio, refinance or take a first step into commercial property investment, be it solely for commercial purposes or semi-commercial, just pick up the phone and give us a call.
Adam Fulcher, Commercial Finance Specialist