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London Mortgage Market Aiding Middle East Commercial Property Investors

September 25, 2018 / Michael Gerrity

According to the International real estate consultant Savills' 30th annual Financing Property report, the UK property lending market is largely stable as a result of pressure on interest cover ratios (ICRs) and debt yields. Despite the Bank of England's decision to raise interest rates, from 0.5% to 0.75%, for only the second time in a decade, lending market stability is leading to some lenders offering lower leverage to borrowers when they refinance, ultimately creating opportunities for Middle East investors. Commenting on the topic, Murray Strang, Head of Dubai at Cluttons Middle East said, "Regardless of the single recent rise in interest rates, financing rates and conditions are more competitive in the UK now than ever before, creating opportunities for Middle East investors to renegotiate terms of their current facilities or look to switch lenders with a range of 'challenger banks' offering competitive terms and rates.  While unlikely, the only danger on...