Despite the fact that the recent problems in European markets may well have impaired the prospects of recovery globally, a recent report from CB Richard Ellis has shown that there has been an improvement in activity in the Dublin property office market during recent months.

Take-up rates in Dublin over the past three months are liable to be higher than in the first quarter of the year, according to the report, with a number of landmark deals set to be signed imminently.

Pretty well all transactions being completed in the Dublin office market currently are lettings deals, although one high-profile office sale has gone through in recent weeks-that of a Georgian office which sold for around two-million Euros.

Added to decent letting activity, there are also several significant necessities for office accommodation in Dublin, which the report claims is very encouraging.

Dublin’s prime rents are currently keeping steady, at around 376 Euros per square metre, or 35 Euros per square foot. However, downward pressures are still affecting secondary accommodation, especially around the M50 where there exists a lot of vacant accommodation.

Although there has been a fall in eth number of new schemes coming on stream of late, the current overhang of space will not erode quickly – and not until more net absorption is achieved, according to the report.

The report states that the rising number of foreign firms – especially IT and pharmaceutical companies – that have chosen to set their European headquarters in Ireland has been particularly encouraging. The report states that many have undoubtedly been attracted by the 12.5% rate of corporation tax, as well as the fact that prime rents have fallen by as much as 44% from peak rates. It says also that the marked decline in wage rates over the last year and a half has also helped, along with the ready labour availability.

The report concludes that, although there is an overall clear improvement in the demand for property investment in Ireland, there is still a lack prime properties coming up for sale. Also, transaction values, despite being up by a significant margin year-on-year, are still weak, the report concludes.

Speaking on the back of the latest market figures, property market experts have concluded that fast-rising commercial property values in the UK have caused European property investors to alter their sights to continental Europe as they look for stronger returns there.

The chief investment officer of CB Richard Ellis Investors. Ian Gleeson commenting on the phenomenon to the London Business School’s Conference, said: “We are seeing much more interesting opportunities on the continent now. Pricing in the UK is less compelling than it was a year ago, although it does still offer value. Commercial property prices in the UK have climbed 13% since July last year during which time the property market rebounded from a two-year downturn. The tenant market, however, is still weak as average rental values continue to fall.

The managing director with Aviva Investors, Ben Stirling, commented that property returns on continental Europe generally returns at an aggregate 7.5% in the period from 2010 to 2015. It’s forecast for the UK for the same period, by comparison, is around 8.5%. Stirling further commented: “On the face of it, the UK does appear to be an attractive prospect purely from a returns perspective, although a lot of the value in the UK is being delivered in the course of this year, and the anticipated returns profile is less attractive looking forward.”

The two firms stated that they certainly recognise value in both the German and French commercial property markets, with Aviva also interested in western European regions like the Benelux and Nordic areas. areas.Stirling further commented on his worries regarding debt problems in such fringe markets as Ireland and Spain. By contrast, Land Securities chief executive, Francis Salway, is convinced that the London office property market and sector prospects appear to be strong due to the fact that developers have not overbuilt in the way they did in the early period of the millennium and good mortgage offerings exist in order to help stimulate the commercial sector still, particularly for individuals with good finances and credit history looking to open up their own location via a self-cert mortgage.

Salway further commented that London, as a city, is very much global, and many businesses are serving Singapore, New York and Hong Kong rather than Newcastle. “London firms continue to plan their expansion in line with global growth,” he added. According also to a new report, the French commercial investment market doubled its turnover in the first quarter of this year, and totalled almost 1.8 billion Euros as compared to 0.9 million for the same period in 2009.

The results of a new survey have indicated that there are signs of improvement in certain sectors of London’s commercial property market, the result of which has pushed office rental expectations upwards at the fastest rate for more than two years. In fact, where London offices are concerned, expectations rose markedly above zero for the first time since 2007’s final quarter. Available space also  declined for the second quarter in a row, according to the figures from the latest UK Commercial Property Survey conducted by the RICS. The figures represent the first anticipated rental rise by RICS surveyors for two years. The figures also showed a positive net balance of 57%, which compares extremely favourably to the previous zero level, represented to largest upward climb on record. This also contrasts sharply with the remainder of the UK which shows available space increasing across all sectors with rental space still in negative territory.

Renting activity continued to increase for commercial properties for the second quarter in a row, despite the fact that domestic and overseas investment demand has toned down a little outside of the London Metropolitan zone despite many favourable mortgage rates. The retails sector still lags behind-especially in London with rising available space still pushing rental expectations, according to the report. In general, the market confidence for the outlook for lettings continued its upward trend, although sentiments were a little deflated as compared to the fourth quarter of last year.

A number of surveyors have raised concerns regarding the possible impact of potential public sector employment cuts following next month’s election on regional lettings activity. There is also concern regarding the changing balance between landlords and tenants. According to Oliver Gilmartin, senior economist with the Royal Institution of Chartered Surveyors, the latest figures suggest that rental expectations for London offices have lifted greatly as a result of the ’still modest recovery in lettings demand’.

‘There are signs that a weaker pound as well as a gradual re-balancing of the UK national economy towards much greater export activity has started to bleed through to industrial lettings activity-particularly in London and the South,’ Mr Gilmartin explained. He went on to say that lettings activity is still rising cautiously across the country, although surveyors remain cautious, concerned that regional office markets could be hit as a result of potential public sector cutbacks as a result of the election could weigh on demand.

Reports from the Royal Institute of Chartered Surveyors (RCIS) indicate that over half of all lending agencies (57%, in fact) state that the feel confident that rental prices for commercial lots in downtown London will increase in the coming months. This is the largest increase in confidence on quarterly projections for quite some time, with the strongest interest in development seen since the end of 2007.

The driving factor many people feel behind this growth of lender confidence lies in the current market situation – with a large number of good mortgage offerings having been made available by lending institutions to support the commercial real estate sector (as well as the various government support designed to help out over the past year) the value of commercial property mortgages and investment has increased significantly. This has drawn in more local investors looking to secure holdings and overseas investors looking to secure prime rate overseas mortgages alike.

Perhaps the biggest indicator of the recovering commercial sector is Canary Wharf, with more companies finally investing back in the area after a near collapse that was seen just a few months prior. Now the Canary Wharf group is reporting positive growth on their locations, with further development to be expected as the year progresses as well.

The primary difficulty facing most commercial property up till now has been the delayed effects the recession had upon most holdings. As most commercial properties are dependent upon long-term business finances a lull in profits for an extended period of time may not have an impact immediately but will have far-reaching consequences in the future. This is exactly what happened in many areas throughout business centers such as those in London where just as the economy was beginning to recover the commercial property sector was beginning its full decline – something that the recent trends look to counter, much to the joy of developers and legislators alike.

In many instances

standard variable rate (SVR ) is lower than the rate that had been paid during the initial deal. That’s the reason for many borrowers whose current deal is coming to an end to choose between  taking out a new deal or moving to their lender’s SVR.

Sometimes the mortgages arrangement fee cannot be justified due to the risk of defaulting so it must be due to the risk of interest rates rising.

Asking yourself if you should  insure against mortgage hike? There is only one answer:

Unfortunately there isn’t  any insurance that will protect against a rate increase.

Choosing to move to your lender’s SVR for the time being you should consider setting up a savings account in which the difference between your old and new lower monthly payment could be saved.

This money can be utilised in a future event of a of a sudden rate increase, giving you a buffer,  while you are looking for a new deal.

The only way to ensure that your monthly payment remains the same, regardless of any rate increase, is to move from your current deal onto a fixed-rate deal. But, even financial experts can’t agree on the way ahead.

Borrowers are facing unprecedented uncertainty over the future path of interest rates, which means a tough choice between low-rate tracker mortgages and the security of more costly fixed-rate deals.

Accordinding with L&C the tracker would be the best choice in terms of total repayments over the five years if interest rates rose at a slow, steady pace, but the fix would be better if rates rose sharply.

 Homeowners with low SVRs of 2.5% should also stay put. The  research shows that on any SVR at 4% or higher you could end up paying more than on a five-year fixed rate by the end of the term (in this „steady” scenario) and should consider remortgaging.

Past Money Troubles? Mortgage Solutions for You!

Just because you have had financial troubles in the past does not mean that you will be unable to get a mortgage.  Don’t worry.  Many of us have been there before.  There are lenders out their that cater to your particular situation.  They are often called credit repair lenders or nonconforming lenders. 

Wondering why someone is willing to lend you money with bad credit?  These lenders understand that just because you have bad credit, does not mean that you should be black balled throughout the investment community right?  To make it to where you too have investment options, these lenders will look at how far you have come and your current situation rather than placing all the weight on your past.  So, maybe you were unemployed and now have a job.  Or you were in serious credit card debt and can finally see the end of it nearing.  No matter what your situation was, as long as you have made forward progress in making your financial situation improve then they can assist you in finding a mortgage that will work for you.

The one thing you will need to remember in regards to mortgages for those of us with bad credit is that even though your credit progress is what gets you the new mortgage, but your past will be factor when it comes to establishing that interest rate.  The key to getting this rate as low as possible is to continue improving your credit so you will have the option for remortgaging for a lower interest rate later on down the line.  Also, you are going to want to shop around and not jump at the first lender who is willing to give you a loan.  Just because you have bad credit does not mean you have to take a long with a huge interest rate.  Remember, you want to continue making good decisions that will improve your credit and not get into another situation in which will possibly damage your credit in the long run.

Remortgaging:  A good or bad decision?

When it comes to remortgaging, the answer is always dependent on the current economic status, and how good or bad of a deal you got when you first financed that home or business.  While it is sometimes are to see what is behind that closed door, we are going to provide you with the key to re-opening it. 

The best way to make decisions when it comes to remortgaging is to look at a variety of factors.  The first question to ask yourself is, "How were things financially when I made this investment".  That question should be quickly followed with the important question of, "Is my situation now, better or worse?"  Once you have gotten answers to the questions, you can narrow down the paths to choose between.  Obviously if you were struggling in the beginning  and have fought your way to a better financial situation, then remortgaging could be a great option for you to lower those interest rates.  For those of us who received our mortgage with low credit scores, this can make a drastic improvement in your financial well-being.

For all of those people who were in a better position than the rest of us, you most likely got a great interest rate on a cheap loan or mortgage option.  If you fall into this bracket then you will notice that lately it just does not really play in your favor to remortgage at this time.  With interest rates staying low after that initial introductory offer, many have chosen to stay with their initial lender. 

With the number of people opting out of remortgaging their properties, first time home buyers and next time buyers are benefiting as well.  With the competition amongst lenders heating up, it has proven to be a buyers market in which many have chosen to take advantage of expanding current investments instead of refinancing old ones.

Halifax has denoted in the past week, that at least for its customers, their spending power has increased by at least 10% over the past year.

The company has a survey that shows how much the money that they spend has at least increased over the last year in comparison with the amount of money they had available in 2008.

According to the company, mortgage holders have more money left over after buying their home essentials than they did the year before.

Halifax says that since March 2008, that they have seen their discretionary income raise from 892 pounds to 989 pounds according to their records.

A Halifax economist said that over the past year, homeowners have seen that income which they should have for household items has increased because of the the mortgage that they have has been lower than in times before.

The fall in the mortgage amount has been a major factor in allowing the homeowner to have more money for things around the home in comparison to making a major house payment when they go shopping for better loans.

We should mention that food prices have increased by at least 10% and utility bills by considerably more, however shopping for your mortgage should still result in better saving if one takes the time to shop around for a short term mortgage.

With a short term mortgage, we will probably see a reduction in the mortgage rate as fall and winter approach and that could see a better result in the amount of money available for consumers, but that is up to the buyer as far as the length of the loan that they want and whether it is fixed or variable.

According to their figures, Clydesdale Bank has approved a substantial increase in the number of mortgages than they did in the past two months over the same time last year.

Their records show that they have approved approximately 30% more home loans during the months of May and June in comparison to the same two months in 2008.

It is one of Scotland’s largest financial institutions where they have more than 150 location throughout the United Kingdom.

One of the reasons for the increase in home loans was the pledge to release some one-billion pounds of new business to business and homeowners across the country.

Clydesdale and Yorkshire, its sister bank, is currently offering mortgages to homeowners with a 95% LTV (loan to value) ratio.

Bank officials say that they have a commitment to offer competitive mortgages while at the same time provide an excellent service. That they focus on the needs of their customers.

At the same time, Craig Carter states that their deposit business is growing as well, “The fact that the half year results showed that our deposits had increased by 15 per cent to 20.1 billion pounds shows ultimately that our customers trust us.Clydesdale continues to play a key role in helping local buinesses navigate today’s challenging economic climate. Ensuring locally deposited money stays within the local economy means we can reinvest these funds to help the growth plans of other businesses in the East.”

A commercial mortgage is generally a loan that is made using real estate as collateral to secure repayment of the loan.

A commercial mortgage is very similar to a residential mortgage, except the collateral used in this case is a commercial building or other business real estate. It is not a residential property. In addition, commercial mortgages are typically taken on by corporation or a businesses instead of an individual borrower or borrowers. In this case, the borrower may be a incorporated business, partnership, or a limited company. Banks and other lenders will find that the assessment of the creditworthiness of the business can be more complicated than is generally so with the case of a residential mortgage.

Some commercial mortgages in consideration are nonrecourse. This means when there is a case of the default in repayment, the creditor only has the recourse of seizing the collateral or the property in mind. There is no further claim against the borrower for any remaining deficiency, regardless of the amount. There are two main reasons this is so, one is that many laws significantly prevent the creditor from going after the borrower for any deficiency. The mortgages structured for sale as bonds, which in essence, give a higher priority to constantly receiving some sort of income. This require a clause in the contract, that allows the lender to take the property immediately. This is regardless of bankruptcy proceedings that the borrower might be going through.

There are times, however when the mortgage is supplemented by a general obligation of the borrower or a personal guarantee from the owner that debt payable in full. This would happen even if foreclosure on the mortgaged collateral does not satisfy the outstanding balance.