We often have clients – usually property developers – who want to borrow to buy a piece of land which is just a plot, i.e there are no buildings on it. Sometimes it will have a planning consent which might be suitable for what the developer wants to use it for, or sometimes the consent Read more about Why don’t banks like lending against land plots?[…]
With a third of the MPC having voted for an interest rate rise yesterday (21st June) the prospects of the cost of funds for SME’s rising this year are increasing. An interesting article in ‘Accountancy Age’ last month drew attention to the serious impact that this could have on the UK’s mainstay businesses, with additional Read more about SME’s at risk from interest rate rises – where are the fixed rate options?[…]
Much has been made of the damage caused to local communities and SME’s by the banks closing branches. The number in recent weeks has been staggering. However it will be interesting to see the impact on the bank’s risk exposure to small businesses. I was involved in the 1990’s in the role out of ‘Business Read more about Bank branch closures – Another perspective (risk to the bank)[…]
Many buy-to-let investors now face having to provide more information to lenders who have more stringent underwriting procedures for ‘Professional Landlords’. Previously they may have obtained lending just by an appraisal of the viability of each property being purchased. Most ‘portfolio lenders’ are now asking for a ‘Business Plan’ and Cashflow projections. There is confusion Read more about Buy-To-Let Portfolio lenders and Business Plans[…]