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Commercial mortgage business

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 19. March 2024

Interested in speaking to brokers about commercial mortgages.

  • Are you seeing more commercial enquiries? What kind of enquiries are you seeing? 
  • What is the lending landscape is like? Are lenders returning to the market/are there any gaps? Will more lenders enter the space?
  •  What would you like to see from lenders and what should borowers  be mindful of? 

3 responses from the Newspage community

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Bob Singh
Founder at Chess Mortgages
We are seeing an increase in enquiries for commercial lending remortgages as recent base rates hikes have left borrowers paying rates in the doube digits.

The specialist lenders are seeing increased levels as they have sensible minimum lending levels whereas some lenders dont want brokers to daken their doorsteps with any enquiry less than £500k.

The High Street lenders who dont have an intermediary focus are losing out on quality business with good margins much more so than the residential market.

New start businesses are having to resort to bridging rate deals to secure freehold premises. With the economy getting better confidence is returning to the commercial market.

Chess is focusing on commercial and short term lending under the Chess Capital banner as we see this as an increasing part of our business going forward.

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Aaron Strutt
Product and Communications Director at Trinity Financial
Our brokers have been receiving more commercial enquiries, often from people struggling to get finance or trying to get a better deal. Bridging and developer exit enquires still regularly come through.
I don't think there is a shortage of lenders, but we are receiving more weird and wonderful enquiries, which often means there is more risk, so the rates go up. Commercial lenders have been raising their loan-to-values and increasing their maximum loan sizes as they look to attract more borrowers.
We recently appointed a new broker to handle our specialist finance enquiries through Trinity Specialist Finance and we are ARs of Optimum Commercial.
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Akhil Mair
Director at Our Mortgage Broker
There's been a noticeable increase in commercial finance enquiries in the last 12 months.
We're receiving various enquiries, ranging from small business loans to commercial real estate financing including HMO’s, commercial investment purchases and bridging loans to take advantage of the permitted development rights for property conversions.
The lending landscape is dynamic, with traditional and alternative lender options available, influenced by regulations and market conditions.
Lenders are cautiously returning with product and criteria enhancements, but there are still noticeable gaps, especially for niche sectors or unique financing needs for self-employed and portfolio landlords.
Possibly, as the economy stabilises, we may see new entrants and mergers, depending on regulatory and market factors.
Lenders should offer transparency, flexibility, and streamline processes. Borrowers should understand terms, compare offers, and ensure financial health before committing.