The effect of the Credit Crunch

The Credit Crunch and the effect on your client(s)

The credit problems are currently having an adverse effect on the lending markets here in the United Kingdom. Many lenders have restricted their LTV limits, reduced their product ranges and/or have pulled out of the Sub Prime lending market altogether.

This has meant that lenders are re-assessing interest rates, which may affect your client’s ability to service their current outstanding commercial loans in the future.

In this climate of “Treating Customers Fairly” it may be prudent to ascertain the financial situation of your commercial clients with a view to making sure that they are adequately protected.

If you wish 1^st Commercial Funding to help in any way, simply complete the Decision in Principle form with your client’s details. This will enable us to search the market for a better re-financing option. We will work with you to protect your client’s interests.

However, the relationship that exists between 1^st Commercial and our high street lenders has ensured that our current products and interest rates have been unaffected. We are still able to offer interest rates from 2.25% above Bank of England Base Rate.