14:58 PM, 27th October 2010, About 11 years ago
We speak to many property developers who tell us that they are not doing any new developments now, “because the economy is weak and the margins charged by funders are too high”.
Banks in the commercial and corporate sectors are paying low rates of interest on deposits which are way below the rate of inflation. Inflation remained at 3.1% in August, well above the governments 2% target.
If you need to get your cash working, do what you are good at, property development.
“Aah,” they say, “but the Banks are not lending”.
This might be true of the High Street lenders but surprisingly there is a strong appetite to fund good deals by the smaller lenders who source their business through specialist development finance brokerages.
The likely impact of Basle III on the High Street is that capital will become more scarce and therefore pricing for the banks margins will increase.
Borrowers are being warned that the new rules aimed at making the financial system more stable will force banks to lend less and charge higher interest rates.
Furthermore, if the Monetary Policy Committee does not get inflation under control soon, there will have to be rises in Bank Base Rate and certain committee members are already calling for this.
So, Don’t Wait………..Develop it Now!!
Our Commercial Finance Partners specialise in Property Development Finance and can help guide you to the lenders which are truly in the market and are open for business. To arrange an introduction to one of our specialist Development Finance Consultants, please call Paul Baudinet on 01603 428588 or email email@example.com to provide him with a brief overview of the developments you are considering. As an example:
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Previous ArticleSpotlight on our Tax and Accountancy partners. Landlord News articles about Tax and accountancy are the best read. In this issue we provide more information on the levels of assistance our partners can provide