Brokers report more deals as fixed rates end and businesses seek sharper pricing
Commercial mortgage brokers reported a rise in refinancing in the second half of 2025, helping to underpin overall application volumes, according to a survey of 580 brokers published by Allica Bank.
More than half of brokers (56%) said refinancing activity increased as fixed-rate terms ended and pricing became more competitive. Nearly 40% of commercial mortgage brokers also reported higher application volumes over the period, while a further 30% said demand was unchanged. Brokers linked the uplift to both refinancing and purchases by businesses seeking to buy their own premises (44%), alongside increased borrowing for investment as interest rates eased.
The survey suggested borrowing intentions continued to move towards long-term plans. The share of businesses borrowing to keep operations running fell from 22% in late 2024 to 6% in the second half of 2025, while applications to raise capital held steady at 33%.
Among brokers who saw fewer commercial mortgage applications, the main factors cited were higher costs and uncertainty over interest rates. The survey was conducted in the weeks after the Chancellor’s Budget, with respondents reporting a short pause as businesses assessed fiscal measures, including the increase in employers’ National Insurance contributions.
In bridging finance, 55% of brokers said applications rose for light and medium refurbishment projects, up from 45% in the first half of 2025.
Looking ahead, 39% of commercial mortgage brokers said they were optimistic about the next six to 12 months, while fewer than a quarter expressed concern. Bridging brokers were more positive, with 55% reporting confidence and 15% saying they were concerned.
When asked which sectors were likely to grow most over the coming year, 55% of responses pointed to property investment, followed by care homes and construction at 34% each.
Brokers also reported wider use of digital underwriting, automated valuations and AI-led processes. More than half of commercial mortgage brokers said technology had improved speed and efficiency across commercial mortgages and bridging.
“What really stands out from this survey is that brokers are still feeling confident going into 2026,” said Charissa Chang (pictured right), head of broker sales for the north and midlands at Allica Bank. “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.
“As rates ease and businesses adapt, we expect confidence to strengthen further. There is real momentum in the market, and it’s now down to banks to match that ambition, by providing the clarity, consistency and communication that brokers and their clients rely on.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
