Lower interest rates, easier access to finance, and better communication from lenders topped the wishlist of commercial mortgage brokers for 2025, according to the latest SME Pulse survey from Atom bank.
The survey polled brokers about their experiences and expectations in the market.
The Q4 2024 survey found that lowering interest rates was the most common desire, with many brokers also asking for relaxed lending criteria, smoother application processes, and tailored products.
Additionally, brokers want to see improvements in the services and communication offered by lenders to strengthen relationships with clients and brokers.
Looking ahead, 77% of the brokers stated that business expansion is their main focus for 2025.
Only 13% aimed to conduct more business in a specific sector, while 3% mentioned cost-cutting and greater automation.
Among those who want to focus on a particular sector, healthcare (33%), finance (20%), and retail (20%) were the most frequently mentioned.
The appetite for external funding is on the rise, with 56% of brokers reporting increased demand from their commercial clients.
This rise was attributed to improved business confidence, with 41% of brokers noting a growing confidence among clients, outpacing those who cited lower interest rates (39%) and increased lender appetite (25%).
However, 70% of brokers said their clients perceived the Budget as negative for their businesses, particularly due to changes to National Insurance contributions.
Just 9% had a positive view of the Budget’s effect.
The reasons for borrowing remained consistent, with property purchase identified as the primary reason by 56% of brokers, followed by growth and expansion (18%) and refinancing existing debt (18%).
In terms of selecting a lender, rate was the key factor for nearly half (48%) of brokers.
This was followed by flexibility of criteria, which 27% identified, while 16% pointed to the relationship and 10% cited speed to offer.
David Castling, head of intermediary distribution at Atom bank, said: “It’s encouraging to see the growing levels of optimism among commercial brokers for 2025 and beyond.
“After the challenges of the last few years, and despite some reservations around the Budget, it seems that plenty of businesses are looking to raise funding to help them invest and meet their aspirations, and that is understandably boosting confidence among brokers, who themselves are keen to grow.
Castling added: “However, it’s clear that lenders in this market can go further to deliver the support that businesses require.
“Brokers want to see lenders focus their efforts on providing not only competitive rates, but bespoke packages which specifically meet the needs and circumstances of businesses.
He said: “They also want to see a greater emphasis on developing smoother processes and a greater standard of communication.
“Lenders who want to win the support of brokers and deliver more funds to UK businesses need to take this feedback on board.”
