Over half of brokers (56%) said refinancing activity rose as fixed-rate terms ended and pricing became more competitive

Commercial mortgage brokers reported an increase 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.

Over half of brokers (56%) said refinancing activity rose as fixed-rate terms ended and pricing became more competitive. Around 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 dropped 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.

What really stands out from this survey is that brokers are still feeling confident going into 2026, said Charissa Chang, 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.

She said: 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.