A poll carried out by Allica Bank showed that 44 per cent of commercial mortgage brokers had witnessed an increase in demand for finance from their clients, while a tenth had seen a rise in applications.
Of those commercial mortgage brokers who reported more applications coming through, half said the main reason for clients seeking finance was to invest in growing their business. Some 43 per cent put the increase down to more firms owning their premises, while 36 per cent said business owners were looking to invest in commercial property.
A third of the brokers surveyed said there was no difference in the number of applications submitted over the last six months. Some 23 per cent said there had been a drop in demand and attributed this to rising interest rates and costs.
Commercial mortgage broker expertise is ‘key’
Charissa Chang, head of sales North and Midlands, commercial mortgages at Allica Bank, said: “With interest rates remaining high and with operating margins under pressure, it’s a challenging time for SMEs across Britain. It’s highlighted just how key the expertise of a broker will be in 2024 as SMEs navigate the funding market.”
“The market has found it tough to adjust to the new reality. Despite this, the results of the survey show there’s still a strong and steady demand among businesses to invest to fuel growth or invest in commercial property. Both banks and brokers alike have a crucial role to play in supporting this ambition.”
In September, Specialist Lending Solutions reported that Allica Bank has offered £2bn in commercial mortgages to businesses introduced by brokers since it launched in 2020.
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