Banks set to take a 'cautious approach' with new commercial lending

Banks set to take a 'cautious approach' with new commercial lending

The commercial lending environment remains challenging for many banks, despite the green shoots of recovery appearing across the economy, it has been claimed.

Securing commercial finance will still be a challenge for some borrowers, despite signs of economic recovery in the UK, it has been claimed.

Speaking to Mortgage Strategy, head of consultancy at banking solutions firm Target Group Geraint Chamberlain highlighted that the economic downturn had thrown up a number of opportunities in a rapidly changing residential and commercial mortgages market in 2009.

However, he warned during 2010 the situation "remains challenging, particularly when it comes to lenders securing funding".

Mr Chamberlain said: "Those lenders originating new business will take a more cautious approach, perhaps with more emphasis on manual reviews and assessments of loan applications."

His comments follow revelations by the Times earlier this week that lenders are inviting investors to access off-market commercial transactions.

Groups of investor syndicates formed by private banks are helping to source finance for big ticket developments, claims HSBC Private Bank.ADNFCR-2843-ID-19553138-ADNFCR
Tuesday, 12 January 2010 00:00
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