Low interest rates are encouraging bankers to take a cautious stance, with lenders offering lower LTV and concentrating on prime investments, research by Cushman & Wakefield indicates.
Nigel Almond, head of EMEA Capital Markets Research, told PropertyEU at Expo Real that the downward trend in LTVs was reflected across Europe. 'With finance rates lower, banks have also been able to increase their margins across the board,' he added.
'The other thing is we continue to see an aversion to risk in the market, so lenders are focused more on prime standing investments in tier 1, tier 2 markets, with little appetite for lending against speculative finance.'
However, the Brexit vote has so far had little negative impact on the UK, with 95% of lenders indicating they are still willing to finance investments in Britain, according to C&W's latest survey of leading trends.
