Priya Patel
According to a survey from Allica Bank, 44% of commercial mortgage brokers have seen an increase in demand for finance from their clients, with 10% also witnessing a rise in applications. Of those seeing more applications, 50% said clients were seeking finance to invest in growing their businesses. Additionally, 43% attributed the increase to more firms owning their premises, and 36% said business owners were looking to invest in commercial property. However, 33% of brokers surveyed said there had been no difference in the number of applications submitted, while 23% reported a drop in demand due to rising interest rates and costs.
Head of Sales North and Midlands, Commercial Mortgages at Allica Bank, Charissa Chang, highlighted the importance of commercial mortgage broker expertise in supporting SMEs as they navigate the challenging funding market. Despite the difficulties, the survey results show that there is still strong demand from businesses looking to invest for growth or in commercial property. Allica Bank has offered £2bn in commercial mortgages to businesses introduced by brokers since its launch in 2020.
