Commercial property mortgages are waiting on the London Interbank Offered Rate (Libor) to stabilise before they become more affordable, said a commercial property mortgage advisor.
Jonathan Moore, head of marketing at Mortgages for Business, said predicting how long it will be till conditions improve is like asking ‘how long is a piece of string?’.
"Like most of the mortgage markets, until Libor stabilises which is currently nearly one per cent higher than base rate then they are going to stay expensive and not stabilise," Mr Moore said.
In May, the British Bankers’ Association Libor rate stood at just over six per cent, compared to the current interest rate of five per cent.
Commercial mortgages depend on "wider economic conditions", Mr Moore noted. " If Libor comes down and they get liquidity back into the mortgage market then things will improve."
The Bank of England’s monetary policy committee is predicted to hold interest rates at five per cent, when it meets later this month.