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Commercial mortgage enquires rise steeply

Interest in commercial mortgages increased by nearly a half over the summer, according to Mortgages For Business.

The commercial and buy-to-let broker and packager says enquiries to its commercial mortgage packager arm increased by 44% between August and September.

MfB head of sales Steve Olejnik says the firm has not seen such an uplift in more than 20 years of business.

He says: “The largest increase has been in placing traditional mortgages for trading businesses and commercial investments – but we’ve seen more Houses of Multiple Occupancy, limited company buy-to-let, residential developments and semi-commercial enquiries, too.”

Managing director David Whittaker says borrowers are going to specialist advisers because high street banks are unwilling to support new projects as they try to bolster their balance sheets.

He says: “This explosion in commercial business is the result of the recent run of house prices increases. Price rises are encouraging small developers to review projects that were not viable at the beginning of the summer. Suddenly, developers need to finance the purchase of sites to build properties on so they can have stock ready for sale in the summer of 2010.”

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