Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Commercial Mortgages - UK - June 2015

“Opportunities in the commercial mortgage market are increasing as the economy recovers, but banks and building societies can still position themselves better to meet the needs of the market and ward off the threat of non-bank lenders.”

Ben Harris, B2B Analyst

This report answers the following issues:

  •     What commercial opportunities can lenders exploit?
  •     To what extent are P2P lending platforms a threat to banks?
  •     How is the regulatory inquiry into small business banking likely to impact the market?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Executive Summary

      • The market
        • Figure 1: Aggregated value of outstanding debt in loan books secured on UK commercial property, 2010-14
      • Loan originations are climbing to signal a recovery
        • Figure 2: Gross value of annual loan originations, 2010-14
      • Market factors
        • Figure 3: Number of non-residential property transactions, 2006-14
      • Low rates finally bearing fruit
        • Figure 4: Monthly average interest rate for UK MFI new advances to PNFCs, 2010-14
      • Non-bank lenders’ presence rising
        • Figure 5: Gross value of loan originations, by type of lender, 2014
      • Companies
        • HSBC targets small businesses with commercial finance
          • Shawbrook building commercial mortgage presence
            • What we think
            • Introduction

              • Definitions
                • Methodology
                  • Abbreviations
                    • Market positioning
                      • The supplier
                        • The customer
                        • Key Insights

                            • What commercial opportunities can lenders exploit?
                              • To what extent are P2P lending platforms a threat to banks?
                                • How is the regulatory inquiry into small business banking likely to impact the market?
                                • UK Economy

                                  • Overview
                                    • Inflation
                                      • Interest rates
                                        • Consumer spending
                                          • Manufacturing
                                            • Imports
                                              • Exports
                                              • Market Factors

                                                • Key points
                                                  • Output growth slows at the start of 2015
                                                    • Figure 6: GDP growth rate, 2012-15
                                                  • Rates remain low for commercial lending
                                                    • Figure 7: Monthly average interest rate for UK MFI new advances to PNFCs, 2010-14
                                                  • Commercial property transactions on the rise
                                                    • Figure 8: Number of non-residential property transactions, 2006-14
                                                  • Write offs on loans to non-financial companies have fallen since 2011
                                                    • Figure 9: Quarterly write offs of loans to PNFCs from banks and building societies, 2010-14
                                                  • Demand for credit from large corporate sector rising
                                                    • Figure 10: Availability of corporate credit to PNFCs in the last three months, 2010-14
                                                    • Figure 11: Demand for corporate credit by PNFCs in the last three months, 2010-14
                                                • Commercial Mortgage Market

                                                  • Key points
                                                    • Business expansion underpins increased demand
                                                      • Smaller providers enjoying success
                                                        • Effects of financial crisis still being felt...
                                                          • Figure 12: Aggregated value of outstanding debt in loan books secured on UK commercial property, 2010-14
                                                        • ...but loan originations are climbing to signal a recovery
                                                          • Figure 13: Gross value of annual loan originations, 2010-14
                                                      • Commercial Mortgage Segmentation

                                                        • Key points
                                                          • UK banks and building societies hold largest share of loans
                                                            • Figure 14: Value of outstanding loan books secured on UK commercial property, by type of lender, 2014
                                                          • Industrial and hotel sectors increasing their share of loan allocation
                                                            • Figure 15: Allocation of outstanding loans to investment and owner-occupied property, by type of use, 2014
                                                          • Non-bank lenders taking a rising share of new loans
                                                            • Figure 16: Gross value of loan originations, by type of lender, 2014
                                                        • Commercial Borrowing

                                                          • Key points
                                                            • Banks’ net lending to businesses back into the black
                                                              • Figure 17: UK MFIs gross lending and repayments from non-financial businesses, 2013-15
                                                              • Figure 18: Net loans to non-financial businesses by UK MFIs, 2013-15
                                                            • Funding for Lending focus has shifted to small businesses
                                                              • Figure 19: Net loans to UK SMEs from FLS participants, 2014-15
                                                          • Market Trends

                                                            • Key points
                                                              • Smaller banks shifting product terms and launching new finance offerings
                                                                • Nascent P2P commercial mortgage sector is growing
                                                                • Brand Communication and Promotion

                                                                  • Key points
                                                                    • Bank ad spend diverted to restoring reputation
                                                                      • Figure 20: Expenditure on advertising commercial mortgages, 2010-14
                                                                    • Press advertising dominates channel spend
                                                                      • Figure 21: Expenditure on advertising commercial mortgages, by media type, 2010-14
                                                                  • Industry Structure

                                                                    • Key points
                                                                      • Industry development
                                                                        • Challengers targeting SME market
                                                                          • New authorisation process is beginning to take effect...
                                                                            • ...though the population of banks and building societies is largely unchanged over past two years
                                                                              • Figure 22: Number of banks and building societies operating in the UK, 2013-15
                                                                          • Aldermore Bank Plc

                                                                              • Recent company activity
                                                                                • Figure 23: Financial analysis of Aldermore Bank plc, 2010-14
                                                                                • Figure 24: Analysis of SME Commercial Mortgages division of Aldermore Bank plc, 2012-14
                                                                            • Barclays Plc

                                                                                • Recent company activity
                                                                                    • Figure 25: Financial analysis of Barclays plc, 2010-14
                                                                                • HSBC

                                                                                    • Recent company activity
                                                                                      • Figure 26: Financial analysis of HSBC Bank, 2010-14
                                                                                  • Lloyds Banking Group

                                                                                      • Recent company activity
                                                                                          • Figure 27: Financial analysis of Lloyds Banking Group, 2010-14
                                                                                      • Principality Building Society

                                                                                          • Recent company activity
                                                                                            • Figure 28: Financial analysis of Principality Building Society, 2010-14
                                                                                            • Figure 29: Principality Building Society commercial lending segment analysis, 2014
                                                                                        • Royal Bank of Scotland Group

                                                                                            • Recent company activity
                                                                                                • Figure 30: Financial analysis of RBS Group, 2010-14
                                                                                            • Santander UK Plc

                                                                                                • Recent company activity
                                                                                                  • Figure 31: Financial analysis of Santander UK plc, 2010-14
                                                                                              • Shawbrook Bank

                                                                                                  • Recent company activity
                                                                                                    • Figure 32: Financial analysis of Shawbrook Bank plc, 2011-14
                                                                                                    • Figure 33: Commercial mortgage advances of Shawbrook Bank plc, 2012-14
                                                                                                • Commercial Mortgage Forecast

                                                                                                  • Key points
                                                                                                    • Uncertainty over recovery but growth expected to continue
                                                                                                      • Rising transactions to drive new commercial mortgage lending
                                                                                                        • Figure 34: Forecast gross value of loan originations, 2015-19
                                                                                                      • Total value of outstanding loans to stabilise over coming five years
                                                                                                        • Figure 35: Forecast value of outstanding loans secured on UK commercial property, 2015-19
                                                                                                      • Strong environment for property acquisitions
                                                                                                      • Further Sources and Contacts

                                                                                                        • Trade associations
                                                                                                          • National Association of Commercial Finance Brokers
                                                                                                            • Trade publications
                                                                                                              • Commercial Reporter
                                                                                                                • Bridging & Commercial

                                                                                                                Companies Covered

                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                Commercial Mortgages - UK - June 2015

                                                                                                                US $1,288.43 (Excl.Tax)