UK real estate debt market report
- July 5, 2019
SummaryThis white paper reports and analyses the key UK real estate debt market trends over last 24 months up to June 2019.
- Understand what is behind an increase in appetite for higher loan-to-value (LTV) loans.
- Vital market intelligence for borrowers, lenders and other service providers active in the UK real estate loan market.
Drawing from our direct experience of advising clients on their financing and hedging needs, we explore 164 transactions totalling £13.6B arranged with 56 lenders. Covering a sizable portion of the UK real estate debt market – about 15% – this report provides an up-to-date breakdown of activity in the sector.
Harnessing data on loan transactions across nine asset groups, it highlights where volumes are rising and falling; reveals what is driving a shift in borrower funding requirements; demonstrates which type of lenders are most dynamic in the UK market and their impact; and provides detail on a selection of our recent transactions.
This material has been created by Chatham Financial Europe, Ltd. and is intended for a non-U.S. audience. Chatham Financial Europe, Ltd. is authorised and regulated by the Financial Conduct Authority of the United Kingdom with reference number 197251.
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Interest rate swaption
An interest rate swaption is an option that provides the borrower with the right but not the obligation to enter into an interest rate swap on an agreed date(s) in the future on terms protected by the swaption.
A cancellable swap is a combination of an interest rate swap and a receiver’s swaption that may be cancelled by the borrower at no cost on an agreed future date.
Interest rate collar
An interest rate collar is an option used to hedge exposure to interest rate moves. It protects a borrower against rising rates and establishes a floor on declining rates through the purchase of an interest rate cap and the simultaneous sale of an interest rate floor.
An FX collar involves buying a cap and selling a floor on the same currencies with the same expiration date. The two options set the upper and lower strike prices.
Interest rate swap and floor
An interest rate swap and floor is a combination of an interest rate swap with the purchase of an interest rate floor.