Commercial First suspends new lending

The firm says it completed a public securitisation in November 2007, but this facility has now been used up and planned arrangements have not materialised. Stephen Johnson, sales and marketing director at Commercial First, explains: “We have explored every opportunity to obtain new funding. “We have a business that made a profit of £13m last year and will make in excess of £20m this year, with a balance sheet of £1.6bn in performing mortgage assets at an average LTV of 68% and 4% margin – yet are still unable to obtain financing. It is abundantly clear the credit market has failed.” ...