Refinancing surge and rising demand signal established businesses are gearing up for growth
Allica Bank, the challenger bank built exclusively for established businesses, has published the results of its latest commercial mortgage and bridging finance broker survey of 580 respondents. The survey reveals a resilient market and growing optimism among brokers for established businesses as they look ahead to 2026.
Reflections on H2 2025
Nearly 40% of commercial mortgage brokers reported an increase in applications in the second half of 2025, while a further 30% said applications remained stable, pointing to resilient momentum despite a challenging economic backdrop.
Rising demand was driven primarily by businesses seeking to purchase their own premises (44%), alongside increased refinancing activity as firms look to benefit from easing interest rates. More than a quarter of brokers reporting growth attributed the uplift to a rise in clients raising finance to invest, indicating 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 familiar: rising costs and continued uncertainty around interest rates. The survey was conducted in the weeks immediately after the chancellor’s 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.
What brokers expect for 2026
Looking ahead, confidence remains resilient, with 39% of commercial mortgage brokers optimistic about the market over the next six to 12 months and fewer than a quarter expressing 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 broker responses identified property investment as the standout sector. Care homes and construction followed closely, both at 34%.
Technology driving change
After early scepticism in previous Allica surveys, technology is now delivering real-world benefits for brokers. Many report meaningful improvements driven by digital underwriting, automated valuations and AI‑led processes. Over half of commercial mortgage brokers say technology has improved speed and efficiency across both commercial mortgage and bridging divisions.
Crucially, brokers say technology is directly helping them unlock finance faster; Allica has invested heavily in its own technology to ensure the broker journey is as simple, quick and transparent as possible.
Charissa Chang, head of Broker Sales for the North and Midlands at Allica Bank, 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.
“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 like Allica to match that ambition, by providing the clarity, consistency and communication that brokers and their clients rely on.”