The impact of the Bank of England changes on commercial property funding

Lawrence Roberts, regional director – Christie Finance – comments, “The reduction in the base rate has direct and significant implications for commercial borrowers. 

“Businesses seeking finance may benefit from more competitive interest rates on loans, asset finance, and commercial mortgages. This is particularly relevant for sectors like property development, retail, and hospitality, where capital investment is key to growth. 

“Companies with existing debt may find opportunities to refinance at lower rates, freeing up cash for operational reinvestment or expansion. 

 “While lenders may tighten criteria to manage risk, the overall environment is shifting toward greater support for business investment. This could open doors for SMEs and growth-stage firms to access funding that was previously out of reach, especially in businesses with a turnover of less that £2m. 

“The rate cut signals a broader shift toward economic stimulus, which may encourage businesses to pursue strategic investments, with greater confidence. Some of these investments could include sustainability and technology and automation.”