o recovery
they have enjoyed long and productive working relation- ships for many years. For some companies, the
problem may be that they happen to operate within an industry sector that is now deemed to be high risk. For others, the terms being of- fered may be prohibitively ex- pensive. Whatever the reason, the net result is the same: an unwelcome and potentially damaging constraint on com- panies that are fi ghting hard to make headway in very dif- fi cult markets. For property investors and
developers, they may fi nd that the fi nal piece of the jigsaw - fi nance - is the most diffi cult to put in place. Whereas a few years ago arranging a mort- gage was simply an adminis- trative process to add to the list, much like applying for planning permission or set- ting up an account with a util- ity company, today fi nance cannot be taken for granted.
A strong case T e message to business bosses, property investors and landlords is not to as- sume fi nance is readily avail- able. Borrowers need to set aside time to compile a strong supporting case and, in most instances, they will need the help and guidance of an expe- rienced and professional bro- ker to get it right. If the current economic
cloud does have a silver lining, it’s that the role of a broker is more important today than it has ever been. When it comes to commercial mortgage ap- plications, the diff erence be- tween success or failure is of- ten down to the way in which a case has been compiled and
www.mortgageintroducer.com
presented to the lender. Brokers also need to be re-
alistic. Most will know if a case stands a fi ghting chance of success and it’s far better for brokers to concentrate their eff orts on those that do, rather than creating false hopes with cases that have little hope. It’s inevitable that lenders will favour applications from bro- kers who have a proven track record of submitting credible, well-presented applications. T is is not a good time to ‘try it and see’. I have been asked if the
Funding for Lending scheme will make a diff erence. T e idea behind the scheme is that banks can access cheaper funding via the Bank of Eng- land, which they can then pass on in the form of more competitively priced loans to borrowers. Funding for Lending will
make more funding avail- able at a lower cost, but bor- rowers will still have to jump through the same credit ap- proval hoops in order to ac- cess it. Borrowers and brokers should not be fooled into thinking that government backed schemes will result in a more relaxed attitude to credit approval, because it won’t. Part of the reason for this
economic cycle taking so long to turn from recession to recovery is because
the
big banks are suff ering from a bad dose of balance sheet indigestion.
Smaller chal-
lenger banks like Aldermore have geared-up to help fi ll the credit gap but we’re not going to solve the problem single- handed. T e road to recovery is go- ing to be a diffi cult journey.
The ‘award-winning’ approach to commercial mortgages
Breaking the mould with: • Quick responses to enquiries • Fast loan decisions • Direct access to underwriters • Hands-on support from commercial experts • Ground-breaking online system • Flexible commercial investment deal structures
t 01733 404 518 w
aldermore.co.uk
FOR INTERMEDIARY USE ONLY
Aldermore Bank PLC is authorised and regulated by the Financial Services Authority for deposit taking and regulated mortgages. Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662
MORTGAGE INTRODUCER JANUARY 2013 41
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