Gary Bailey, Sales Director at Lancashire Mortgage Corporation speaks to B&C about his views on today’s market and the UK economy.
It’s been over half a decade since the financial crisis hit in 2008 and I think we can firmly say that the UK’s economy is very much on a positive footing. Recent discussions around interest rate rises put them well ahead of what was originally expected – an extremely positive sign for the economy.
These factors teamed with more optimism from investors and an increased appetite to lend means a number of the UK’s markets are flourishing. More businesses are expanding, resulting in the need for extended office spaces, more equipment and facilities and new business premises. While London has been the key driver of this growth, it’s now extending to the other regions, with development rife in Birmingham, Manchester and Liverpool, amongst others. We’re seeing an increase in applications for commercial loans for developments right across the UK.
Businesses and individuals are looking for funding options to enable them to fulfil aggressive growth plans. The number of lenders they have to choose from is vast - from mainstream outlets like banks, to alternative lenders such as insurance companies, asset managers, PE funds and debt funds. In fact, almost a quarter of commercial property loan originations in 2013 came from non-bank lenders*.
As a result of this competition, lenders are offering higher loan-to-values, lower interest rates and adopting more compelling sales pitches. When sourced from an experienced and reliable lender, there is a whole range of product options. Savvy lenders are continually developing products to deliver effective short and long term funding solutions to brokers and their customers. At Lancashire Mortgage Corporation we continually seek broker feedback to ensure we deliver effective new products, and continually develop our existing ones.
Brokers are well aware that many alternative lenders restrict the use of their loans, but here at Lancashire Mortgage Corporation we’re happy to consider a multitude of purposes and client circumstances. Small businesses are the lifeblood of the UK’s economy so it’s essential they are supported and able to thrive. By considering our loans for growth purposes, brokers and financial intermediaries will be able to unlock more opportunities and assist more of their clients. We’re confident the market will continue to thrive as businesses and individuals look for ways to capitalise on growth opportunities, should they be supported by competent lenders.
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