Commercial Mortgages for Property Investors

The credit crunch seen over the last couple of years has led to a whole host of problems for the property investor who is looking to build a bigger portfolio for future retirement. For a start, the reduction in the amount of mortgages has had its obvious effects. The banks have significantly reduced the number of mortgages they are willing to issue to property buyers at any one time. Moreover, the criteria against which mortgage applications are assessed has been considerably tightened.

The 2 major changes that have been see in the recent commercial mortgage lending practices include the following:

1. The amount of deposit required towards a buy to let mortgage is now much higher than it used to be
2. The criteria against which borrowers are assessed for a mortgage application is considerably tighter than it was when the property boom was going on.

All this means that there are now fewer people who are able to make a property purchase, due to good mortgage or best remortgage product availability, which is resulting in the stagnation of the house prices. Although it is good to see responsible controls finally being introduced into the market, it has meant that a lot of potential buyers are being pushed out of the market due to a lack of mortgage financing. This is resulting in excessive stock of houses for sale onto the market.