Investors are finding it harder to borrow against property assets as banks tighten their loan criteria amid the credit crunch. Financial Times

Typical maximum loan-to-value ratios have fallen from more than 80% two months ago to about 70%, according to some experts.

This means that a buyer of commercial property would typically have to provide about 50% more equity than before for the same deal.

Margins for loans have also increased and experts suggest that banks’ debt margins may have risen by 30-40 basis points or even, in the most risky scenarios, up to 100.