Some 48.5% of brokers have seen an increase in commercial mortgage applications over the past six months, up from 40% in Q4 2024, according to a survey of brokers from Allica Bank.
Just 20.3% of brokers reported a decrease in applications, while nearly a third (31%) said volumes remained mostly unchanged.
Where applications did decrease, the reasons remain consistent with Q4 data, with 45% of brokers citing rising costs as the main barrier to borrowing, closely followed by ongoing concern around rate movements.
Of the 200 brokers surveyed, 45% reported a rise in the number of businesses looking to purchase their own premises – a sure sign that long-term stability remains a priority for established businesses.
In bridging finance, brokers reported a strong appetite for growth, with 45% reporting a rise in investments, 44% in refurbishment, and 37% in development projects.
According to Allica Bank, the data paints a positive picture of where the commercial mortgage sector is heading over the next six months – a dramatic turnaround from Q4, which showed that 51% of brokers were concerned about growth for 2025.
Commenting on the findings Allica Bank head of broker sales, North and Midlands Charissa Chang said: “After a tough period, this is a sign that SME confidence is starting to return. Businesses are making decisions again, and we’re seeing more clients looking to secure their premises and invest in their long-term future, which is exactly where the market needs to be heading.”
She added: “It’s also a clear sign of resilience. Allica’s recent SME Lending Gap report revealed that the UK has some of the lowest rates of business investment in the G7 – but SMEs are still planning, still borrowing, and still investing, and that says a lot about their mindset, and the role brokers play in helping them move forward.”
