Commercial and bridging finance brokers are gearing up for growth, according to a survey by Allica Bank.

The challenger bank said the firms surveyed felt resilience and growing optimism about business in 2026.

The Allica survey was carried out before the inflationary effects of the conflict in Iran.

Nearly 40% of commercial mortgage brokers reported an increase in applications in the second half of 2025.

A further 30% said applications remained stable.

Rising demand was mostly driven by businesses wanting to buy their own premises (44%), alongside increased refinancing activity as firms look to benefit from currently easing interest rates.

More than a quarter of brokers reporting growth attributed the uplift to a rise in clients raising finance to invest.

Allica said this indicates early signs of returning confidence in the market.

In H2 2025, borrowing motivations moved decisively towards long‑term investment.

Far fewer businesses were borrowing simply to keep operations running, falling from 22% in late 2024 to 6%, while applications to raise capital held firm at 33%.

Refinancing gathered pace too, with 56% of brokers seeing higher activity as fixed‑rate terms ended and pricing became more competitive.

For those brokers that reported a decline in commercial mortgage applications, the reasons were rising costs and continued uncertainty around interest rates.

Allica surveyed 580 brokers.

The survey was conducted in the weeks immediately after the chancellor’s 2025 Autumn Budget, with many brokers describing a temporary pause as businesses assessed the impact of fiscal changes, including the increase in employers’ National Insurance contributions.

In terms of bridging finance, 55% of brokers said they had seen a notable growth in applications from clients seeking to finance light and medium refurbishment projects, rising from 45% in H1 2025.

Looking ahead, confidence remains resilient, with 39% of commercial mortgage brokers optimistic about the market over the next six to 12 months.

Fewer than a quarter expressed concern. Bridging finance brokers are even more positive, with 55% reporting confidence and just 15% saying they are concerned.

When asked in which sectors they expect to see the strongest growth over the coming year, 55% of brokers identified property investment as the standout sector. Care homes and construction followed closely, both at 34%.

Allica Bank head of broker sales for the north and midlands Charissa Chang said: “What really stands out from this survey is that brokers are still feeling confident going into 2026. Even at a time marked by uncertainty, brokers are seeing steady demand, with strong appetite in sectors like property, care homes and construction.

“This reflects the resilience and ambition of the established businesses that brokers support. Many continue to invest, refinance, and plan for the future, relying on brokers’ expertise to guide them, and that’s a positive signal for the year ahead.”