Commercial mortgage panellists at this year’s Finance Professional Show in London saw a broad level of client confidence about investing or expanding in the next 12 months.
They highlighted optimism driven by entrepreneurial activity after a tough period for lending in semi-commercial and mixed-use properties due to Covid, and fiscal and geopolitical upheaval.
After “the hardest two years of my career” the high street is “coming back to life”, said Duncan Kreeger, CEO and founder of TAB, noting that interest rates were heading the right direction.
Stephen Spinks, business relationship manager at Allica Bank, noted that investors continued to be risk-takers and see uncertainty as opportunity, stating they’re “ready to go”, despite some hesitation in the market as many waited to see the outcome of the Budget.
Meanwhile, increasing diversification from landlords has led to continued growth in both commercial and residential divisions, driven by clients moving into commercial properties.
The panel discussed the importance of offering flexible loan sizes and options to meet client needs for semi-commercial and mixed-use properties.
Tanya Elmaz, managing director of intermediary sales at Together, stressed the benefits of spreading risks with residential and commercial rent, while Marc Callaghan, head of commercial Lending at OSB Group, highlighted a significant increase in semi-commercial investments as landlords diversified away from pure AST (assured shorthold tenancy) strategies.
In response to an audience question about flexibility over hybrid properties, Duncan Kreeger said that some lenders aimed to deliver “mortgages at bridging speed”, targeting two-to-six weeks, despite semi-commercial properties tending to take two-to-six months.
The panel agreed that speed, execution and delivery were key, while a common issue could be when residential properties were converted into HMOs, with some not having licenses, but each being considered by its own merits.
On affordability and stress testing, Duncan Abraham, regional director at West One, stressed the importance of understanding borrower experience and the need for a strong relationship with lenders.
Jamie Russell, commercial director at Ortus Secured Finance, added: “If a borrower has a non-performing asset, such as a hotel or care home, they must be able to show they have the experience to turn it around.”
An experienced BTL landlord gives you more confidence as a lender, concurred Marc Callaghan. Trying to tick all boxes means a borrower is less likely to succeed. For Duncan Kreeger, the key questions to ask were who are you, why are you buying, and what are you going to do with it?
Looking ahead to 2026, the panel was in broad agreement that the commercial market was in a bright space, with more landlords diversifying and interest rate trends expected to improve affordability. Tanya Elmaz added that the market was “stable but uneven”. Industrials and office space was booming, she noted, but those that had good ESG ratings would be in a much stronger position.
The panel agreed on predictions of continued growth and opportunities for savvy investors. As Stephen Spinks concluded, “2026 is going to be the year of the professional landlord.”