The commercial mortgage market continues to rely on strong relationships and human expertise despite the growing use of artificial intelligence (AI), according to two industry leaders featured in the latest episode of Accord Mortgages’ Growth Series podcast.
In the discussion, Mike Davies, head of lending at YBS Commercial Mortgages, was joined by Matthew Martin, director at Align Property Finance, to explore how the market is evolving and where technology fits into its future.
Martin explained that his firm’s approach is built on long-term client relationships rather than transactional lending, noting: “At Align, we act as our clients’ trusted advisors who understand the bigger picture.”
He added that the complexity of commercial mortgage deals requires early risk identification and careful structuring to deliver sustainable outcomes and build trust.
He noted that this often includes offering support beyond revenue-generating activities, such as helping clients liaise with lenders or source solicitors.
“It’s all about being there for the client, way beyond the deal,” he said.
The conversation also examined shifts within the commercial sector, including the rise of houses in multiple occupation (HMOs) as landlords seek higher yields.
Once seen as a lower-quality market, HMOs are now becoming more professionalised, with better management and improved property standards.
Technology and AI were another focus of the discussion.
Martin recognised their growing role in improving efficiency but cautioned against depending on them too heavily.
He said: “AI can support efficiencies, but what it cannot do is replace the human touch – relationships remain at the heart of commercial lending, especially because of the complex nature of many of the deals we see.
“The bottom line is that technology and AI can help us to do our jobs better, getting a better result for the client – but there are limitations, and some jobs that will always need to be undertaken by a person.”
Looking ahead, both speakers expressed cautious optimism about the market’s resilience, noting its ability to withstand Brexit, the pandemic, and rising interest rates.
Martin said: “The market has shown resilience through Brexit, Covid, and rising interest rates.
“Getting back to a place of stability is key, and adaptability will define success in the future for borrowers and investors alike.”
Davies added: “It’s always fascinating to hear these views on the market, especially on topics that affect us all, such as the impact of AI.
“It’s reassuring to see that there is a recognition that relationships and human connection are still so important in the sector.
“This is another great addition to the Growth Series library, and I’m sure many advisers will benefit from the insight and knowledge it provides.”
