Property Loans Default

The number of commercial property loans in default has soared 400% in just 1years, according to a report.
The study of bank lending to the commercial property industry illustrates that while the amount lent continued to rise in 2007, nearly four hundred loans slipped into default, up from fewer than eighty in 2006.
Although the collective value of the loans – at £250m – is somewhat small, it suggests that a increasing number of smaller property investors and developers are failing because of the present financial crisis.
Unexpectedly, the number of commercial property loans that are in breach of financial covenants, but not yet in default, improved over the year. Loan breaches reduced from 1,900 – 1,050, suggesting banks are working harder to resolve debt problems before they move to default.


  1. Pune Builders
    Posted May 26, 2008 at 12:18 am | Permalink

    Nice article.Lifestyle changes tend to pressurize people into buying properties of higher value than they can afford resulting in defaults.More over, the number of frauds relating to loans has also increased.

  2. Posted May 26, 2008 at 4:41 am | Permalink

    Booming markets invariably bring with it unsavory people, who try to make some quick money through dubious methods. This is more or less the state of India’s property market at this point of time. There are developers who sell the same piece of land to number of customers and there are those who sell land without clear titles or mandatory permissions from the authorities.There are many fly-by-night operators and others in the unorganized sector who indulges in such fraud. So what should a buyer do? I would suggest buyers to investigate the background of any developer thoroughly. Believe me, if you are not careful, your life’s savings could be at risk.For more view-

  3. Posted May 28, 2008 at 6:28 am | Permalink

    Yes bank easily provided the loans to the needed person against the property which every person can easily take ownhome which is very easy to buy.

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