The performance of commercial mortgage lenders in the UK has improved since the COVID-19 pandemic. In the early days of the pandemic, many lenders were reluctant to lend to businesses, as there was uncertainty about the economic outlook. However, as the economy has recovered, lenders have become more willing to lend.

There are a number of factors that have contributed to the improvement in the performance of commercial mortgage lenders. First, the UK government has introduced a number of schemes to support businesses, such as the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS). These schemes have helped businesses to stay afloat, which has reduced the risk for lenders.

Second, the Bank of England has cut interest rates, which has made it cheaper for businesses to borrow money. This has also made it more attractive for lenders to lend to businesses.

Third, the UK economy has recovered from the pandemic. This has increased the demand for commercial property, which has made it easier for businesses to secure loans.

As a result of these factors, the performance of commercial mortgage lenders in the UK has improved. However, there are still some challenges that lenders face. One challenge is that the supply of commercial property is limited. This is due to a number of factors, including the fact that many businesses have been forced to sell their properties during the pandemic.

Another challenge is that the cost of commercial property has increased. This is due to the fact that demand for commercial property has increased, while the supply has remained limited.

Despite these challenges, the performance of commercial mortgage lenders in the UK is expected to continue to improve in the coming years. The UK economy is expected to continue to grow, which will increase the demand for commercial property. This will make it easier for businesses to secure loans, and will benefit commercial mortgage lenders.

Here are some additional details about the performance of commercial mortgage lenders in the UK post-COVID-19:

• According to a report by the British Bankers’ Association, the number of commercial mortgages approved in the UK increased by 18% in the first quarter of 2022 compared to the same period in 2021.
• The average loan size for commercial mortgages also increased, from £1.6 million in the first quarter of 2021 to £1.7 million in the first quarter of 2022.
• The improvement in the performance of commercial mortgage lenders is being driven by a number of factors, including the economic recovery, the low interest rate environment, and the government’s support schemes.
• However, there are still some challenges that lenders face, such as the limited supply of commercial property and the rising cost of commercial property.

Overall, the performance of commercial mortgage lenders in the UK has improved since the COVID-19 pandemic. The economic recovery, the low interest rate environment, and the government’s support schemes have all contributed to this improvement. However, there are still some challenges that lenders face, such as the limited supply of commercial property and the rising cost of commercial property.

Contact Giles Finance on 0208 088 2211 for your Commercial Mortgage Finance needs in the UK.

Written by: Giles Finance
Dated: 06 June 2023