News/Press
July 2008 - European Central Banks increase rates
Concerns that the European Central Bank will put up their interest rates this week - putting more pressure on teh sterling exchange rate and making some imports more expensive.
June 2008
Evidence Valuers still remain very cautious and only best quality properties seem to be coming in on expected values.
June 2008 - E1 completes on 90% LTV
E1 completes on a 90% LTV owner occupier factory/offices unit - very good quality business and great pricing and loan to value. So good deals still available for the right borrower.
June 2008 - Base Rates
Base rate remains 5% but some concern that the Bank of England’s next rate change will be an increase to help choke off inflationary pressures.
May 2008 - Commercial First News
Commecial First sort out short term funding via Lloyds and this provides a working capital line for them; rumours in the market that they may have a product by the end of the year.
April 2008 - Small Firms Loans Guarantee Scheme
The Government announced that from the start of April the terms
relating to eligibility have been relaxed and will make the scheme more
attractive/available for potential borrowers.
The DTI seeks to
increase utilisation of the scheme by 60% this year and this move will
certainly help; The scheme used to be popular with lenders but fell out
of favour as the terms became more onerous and paperwork became more
detailed. As a result lenders didn't feel the income and time were
worth the income generated. As a result we have seen much fewer
applications under the scheme than historically.
The scheme
works by providing security for applicants where no other security
exists and may then mean the lender will agree to the loan. Conditions
apply; for more details call E1 and ask for our underwriters.
10th April 2008
Base Rate reduced a quarter of a precent to 5.00%.
19th March 08 - Commercial First suspend all new loans
The big news this week remains the ‘ credit crunch’ and in particular the news announced late Tuesday evening that all existing pipeline and any new cases would not be progressed. The stance was advised as being temporary but we do not know if the lender will come back with a new funding line next week/next month or at all. Let’s hope they can raise new funding.
Clearly this is a big blow for commercial finance and brokers/packagers. Commercial First have set the standard for self certification commercial finance and were this week- the only lender at 85% ltv on self certification. This was clearly always going to be difficult to maintain given the lack of appetite from investors to buy the loans in due course but I think the market was hoping the lender could maintain its product offering- albeit at a reduced ltv. Why wouldn’t investors want a clean investment property with market rent more than enough to cover the loan with a margin? A case of throwing out the baby with the bath water - but the appetite clearly isn’t there for any level of self certification.
Base Commercial lending has withdrawn its self certification product leaving only really Interbay in this market but at much reduced ltvs and more selective property types.
Press comment this week on the residential market confirms that obtaining equity from properties will remain difficult and this will knock onto the commercial market.
Valuations remain variable- with some coming in well below expected valuation levels and some coming close- so finding the right lender at the right ltv is only part of the problem.
As I have outlined before I sense the bad news has some way to run yet. I think we need to see a little more leadership from the Bank of England- along the lines of the Fed in the USA- to help stave off further bad news. The run on HBOS yesterday is evidence of turmoil remaining and where rumour is as powerful as facts.
We remain happy to place cases for brokers who cannot currently send in to Commercial First. A period of re-adjustment on property prices is continuing and vendors will need to go along with this and applicants reduced ability to raise money or be left with decreasing assets that they don’t want.
The prime lenders generally haven’t been busier this year and will happily pick up the better quality cases.
March 08
Base rate on hold at 5.25%.
November 07
Magdalena Filipova joins the completions team from Newcastle University
October 07
New lender Islamic Bank of Great Britain is welcomed to our lender panel.
Fall out from USA Self Certification Mortgages spills onto non prime commercial mortgages with providers generally increasing rates and reducing LTV’s.
September 07
New lender Base Commercial is welcomed to our lender panel
Further enhancements made to E1 Online system including improved intelligent Dip system and easier navigation.
August 07
Master Packager status attained with 5D Commercial.
E1 complete a refurbishment of bottom floor to enable additional staff to be accommodated including its own Design Studio.
July 07
2000 introducers now registered with us
June 07
Hanna Christiansson joins the Completions Team
May 07
E1 showed at Money Marketing Live 07 at Olympia
E1 attend Mortgage Expo in Manchester with The Mortgage Times Group
April 07
E1‘s Intelligent DIP system completes intensive trials and is launched.
E1 achieves key partner status with Interbay Commercial (prior we were master packagers)
