January is a bumper month for commercial enquiries?>
January sees commercial mortgage enquiries almost three times greater in January 2020 compared with the same month last year.
The uptick in enquiries could be due to many factors but is most likely due to more political certainty and an end to the Brexit debacle that stagnated growth and productivity throughout the entire economy.
After the holidays’ investors have returned to work and are increasingly looking at the commercial property market to widen their investment risk profile.
However, it is still too early to know if this economic blip will translate into a full and sustained economic recovery this year.
The New Year has also seen several lenders roll out new offerings and revamp many of their commercial investment products, providing improved rates and bespoke products. This is probably due in most part to increasing competitive pressures in the mortgage industry.
Many firms have turned outside of the traditional bank borrowing model for finance, which has impacted on the banks’ profitability and they are fighting back.
Last year challenging market conditions had put pressure on margins, but 2020 pans out to be a busy year with heavy demand we may see lenders contract their offerings again.
A commercial mortgage is a loan secured by commercial property, such as an office building, industrial warehouse, factory or retail premises. Commercial mortgages are typically used to acquire, refinance, or redevelop commercial property.