With the finance markets in turmoil and an associated downturn in the UK housing market, fccf has undertaken a review of availability and pricing of property finance.

Development Funding

A number of lenders that were offering highly geared or 100% funding have withdrawn from the market. Those that remain open for business are being cautious, have tightened lending criteria and pricing has increased. Funding is still available for the right project (location, housing type, profitability, project size and length). Valuers are being cautious and deals are falling over because of both projected GDV’s and Residual Land Values are falling short of expectations. Lenders are not funding high density, town centre, high rise flatted developments. Small, low to mid priced housing schemes have never been so attractive!

Commercial Mortgages

The closure of a major self-certification commercial mortgage provider because of the unavailability of credit from the market has sent shock waves throughout the industry. Who is next? Non-status and self certification commercial mortgages are available from alternative sources, but LTV’s have reduced and pricing has increased.
Status commercial mortgages remain available from high street and specialist lenders, but lending criteria has tightened and pricing has increased.

Bridging Loans

Whist a small number of bridgers appear to have run out of money (or so the rumours say) funding is available from £100k to £25M from several sources on a non-status basis (from c. 1% per month) and on a status basis (from less than 1% per month) at LTV’s of up to 80% for residential property and 75% for commercial property and land with appropriate planning consent. In light of the credit crunch this market is surely set for further growth.

Please refer to relevant PRODUCT tab for information on products and pricing.