OUR VIEW OF THE CURRENT LENDING MARKET - by Richard Spicer, Senior Partner, March 2009

Brokers who, like BMS, have been in the business of providing advice to clients as to their funding needs, then sourcing thos funds, and who have lived through five recessions, know how important it is to continue to maintain contact with all lenders, across all sectors of the markets.

I have adhered to this policy since 1974 when as Spicer & Company I first entered the market. We maintained that policy as a firm until 1990 when the Company had some fifty branches and was sold. BMS which I started in that same year almost 20 years ago is a specialist broker that receives most of its business from other brokers. For this reason alone, it is imperative BMS has an up to the moment feel and understanding of what lenders are doing and what they are not.

I will not speculate as to the current state of the economy - we are brokers, not economists with crystal balls! I will however confirm the feeling most commentators have, in that I think they are right when they maintain that if the purchasing of toxic debt by the Bank of England does not kick start the lending markets, then the recession will be long and very destructive, indeed.

It is a fact that whilst most pundits, and I dislike having to state, some brokers too, are openly talking the lending market 'down' by proffering the view that there is no lending taking place, they are wrong. Money is going out of the banks doors, and not just to fund the pensions of the miscreants! Commercial property investment deals are being done, including refinancing at lower rates; residential property development - yes, residential development IS still being funded. The terms of lending are more stringent than before and deals are taking longer to complete, but deals are still being done.

Borrowers are, we are finding, more flexible as to what terms they will accept. This is not to state that lenders are charging higher rates of interest or lending fees. They are not, but what they are doing is lending professionally, cautiously, and they are indeed 'cherry-picking', and who would expect anything other.

The word is, good clients with good histories and sound proposals, will get funding, but more than ever before they need a good broker, one with discipline, well trained, a highly developed desire to win, tenacious, totally loyal to their master and with the ability to pick up the scent of a lender, miles away, and follow it without waver. A bit like my gun dog!