NACFB insights: What’s keeping brokers awake at night?
The NACFB’s latest impact report – published earlier this year – reveals the full spectrum of pressures facing commercial finance brokers. A fifth (21%) of surveyed brokers cited maintaining client relationships in a competitive market as their top operational challenge, followed by coordinating with lenders on terms (18%) and adapting to regulatory change (15%). In terms of more external concerns, 21% of brokers said stricter lending criteria posed the greatest threat to their firm’s success, and 10% flagged lenders seeking to reduce their panels as a risk. Kieran Jones, the NACFB’s head of advocacy, highlighted a dramatic shift: “During the pandemic, over 20% of brokers cited the rising cost of professional indemnity insurance as their biggest concern. Today, that figure is under 1% - thanks largely to the NACFB Mutual, which has reintroduced competition and led the way in improving affordability and access.” NACFB Morning Briefing subscribers can access all the latest data in the full impact report, available online here.
NACFB, Impact report 2024 Commercial Broker: Why access to financing is crucial to SMEs
“Access to the right financial solutions and support will be key to the future success of businesses up and
down the country,” says Dave Furnival, head of broker at NACFB Patron and
headline sponsor NatWest. Despite their significant role, SMEs’ risk profiles
can mean they face hurdles in accessing the financing they need. Startups can
face further challenges, some having little or no track record of revenue and
sometimes only their ideas to determine their potential. Writing in the latest
edition of the Association’s Commercial Broker magazine, Furnival outlines why
brokers are the vital link between SMEs and the diverse range of funding
options available. Read the full article online here.
Commercial Broker, The right solution Partner spotlight: In need of marketing & PR agency support?
With more than 100 years of collective experience across the mortgage and specialist property finance
sector, the team at Square 1 Media has an enviable track record for delivering meaningful coverage and commercial
results. Clients include lenders, brokers, property companies and industry
suppliers. Using their market knowledge and extensive network of contacts to
make a tangible difference, the NACFB Partner enables their clients to spend
their valuable time managing their business, rather than their agency. Square 1
Media can support with PR, marketing consultancy, content marketing, partner
marketing, research, branding and positioning, media training and copywriting.
Importantly, they employ former trade journalists to generate topics and ideas
for clients, which ensures that written content is spot on every time. Full
details about Square 1 Media’s offering can be found here.
NACFB, Partner spotlight |
Commercial Finance for Property |
LHV Bank sees 30% loan book growth in Q1
LHV Bank has announced a robust set of first quarter results, showing continued growth
across its core business areas. The NACFB Patron’s loan book grew by over 30%
compared to the end of 2024, reaching £0.4 billion, while deposits rose to £0.7
billion. The bank issued more than £130 million in new loans in Q1 2025 alone,
driven by sustained broker demand and growing interest in the lender’s
commercial and investment finance offering. Also in Q1, LHV reported a net
profit of almost £1.8 million and a return on equity after tax of 9.6%. The
bank’s capital ratio stood at 22.7% at the end of March, underlining its
position as a well-capitalised institution focused on sustainable growth. Erki
Kilu, CEO of LHV Bank, said: “We are building a bank that puts customers first,
balances technology with trust, and supports both businesses and individuals to
achieve their financial goals.”
LHV Bank, Press Release Allica Bank enhances specialist BTL credit appetite
Allica Bank has announced a raft of enhancements to its specialist buy-to-let (BTL) appetite, allowing it to
support an even wider pool of brokers’ clients. Having launched the product in
February this year, the NACFB Patron has simplified its affordability,
with its standard residential BTL portfolios and multi-unit
freehold block cases now all being assessed on gross rent. HMO cases
will continue to use net rent after a typical 25% costs allowance. It has also
expanded its appetite to include professional landlords looking to fund fewer
than four properties (provided they already own at least four investment
assets); holiday lets with no trading history on an assured shorthold
tenancy; and corporate lets where subletting to professionals is
permitted.
Allica Bank, Press Release YBS Commercial supports landlords and investors
In response to market conditions, YBS Commercial Mortgages has restructured its buy-to-let
(BTL) range, improving rates for experienced portfolio landlords with larger
borrowing requirements. The changes have paved the way for the NACFB Patron to
reduce rates on its BTL range by 0.15% for those wishing to borrow more than
£750,000 and include a five-year fix at 4.80% (was 4.95%) up to 65% LTV with a
3% fee. Additionally, two new products are introduced at up to 55% LTV for
those wishing to borrow more than £750,000, priced at 4.75% fixed for five
years with a 3% fee, or 4.95% with a 2% fee. Mike Davies, head of lending
at YBS Commercial Mortgages, said: “These changes are part of our ongoing
commitment to identifying and making improvements which benefit our brokers and
their customers wherever we possibly can, providing support to high quality
businesses looking to fulfil their borrowing needs.”
YBS Commercial Mortgages, Press Release Together reduces regulated bridging rates up to 60% LTV
Together is making its lowest rates available to more customers looking to borrow at a higher
loan-to-value (LTV). The changes will apply to regulated bridging loans,
available to all brokers and customers. For first charge regulated bridging
products, the lowest rate of 0.85% will now be available up to 60% LTV, which
was previously only available to those borrowing up to 50%. Lowest rates
on the NACFB Patron’s second charge regulated bridging products will also be
available up to 60% LTV, up from 50% LTV. Tanya Elmaz, director of
intermediary sales at Together, said: “At Together, achieving the best outcomes
for our customers is at the core of our ethos, so having the opportunity to
make these changes in their favour is incredibly rewarding.”
Together, Press Release Bridging Finance hits historic efficiency
In the first quarter of 2025, bridging finance activity demonstrated remarkable stability, achieving a historic high in operational efficiency. Total gross lending reached £202m, maintaining consistency with the previous quarter, while average completion times fell to an unprecedented 32 days. Raphael Benggio, director of bridging at MT Finance, remarked: "The uptick in investment purchases, from 13% to 23%, suggests a strong link to stamp duty considerations." The data indicates a growing maturity in the sector, with regulated loans accounting for 44% of activity. As the sector enters the second quarter, there is optimism that bridging finance will continue to be a vital tool for investors and developers throughout 2025.
BestAdvice Quantum Mortgages teams up with Fort
Quantum Mortgages has partnered with Fort Advice Bureau to launch Fort Bridging, marking its entry into the bridging and development finance market. The collaboration aims to enhance customer experience by providing continuity of service across bridging and longer-term mortgage solutions. Wes Friedel, head of bridging finance at Quantum Mortgages, expressed enthusiasm for the partnership, stating: "We're delighted to be working alongside the team at Fort Bridging on their new venture." The initiative promises instant terms, transparent pricing, and a commitment to excellence in lending and advice.
BestAdvice Maslow Capital secures £14m for Edinburgh scheme
Maslow Capital has finalised a £14m development loan for a 76-unit purpose-built student accommodation (PBSA) project in Edinburgh, marking their fourth collaboration with Q Investment Partners (QIP). This partnership has now exceeded £61m in total financing. The site is strategically located near The University of Edinburgh and Edinburgh Napier University.
Development Finance Today |
Asset, Leasing & Business Finance |
One.funding celebrates successful first year
One.funding is marking its first anniversary with strong momentum - over 100 funding agreements activated,
18% of customers returning for further support, and a business model that puts
lenders, customers, and suppliers on the same page. From day one, the NACFB
Member firm set out to create a joined-up journey, where everyone involved in a
transaction benefits from smarter, more transparent outcomes. CEO Lee Schofield
said: “Our approach with lenders is simple: we bring quality. That means
well-qualified applications, higher conversion rates, and a shared mindset
around delivering value — not just finance. We work with lenders who want to be
part of that.”
One.funding, Press Release Reward Funding expands Midlands team
Reward Funding has further strengthened its presence in the Midlands by
appointing a new business development director to support its continued growth.
Carl Perry joins the NACFB Patron’s Birmingham office, bringing over 25 years
of experience in the financial services sector across the region. In his new
role, Perry will be focused on expanding Reward’s extensive network of
introducers, as well as providing flexible asset-secured funding solutions
across the Midlands to help ambitious entrepreneurs and businesses achieve
their goals. Steph Brown, Reward’s regional director in the Midlands,
commented: “I am looking forward to working with Carl to strengthen and grow
our relationships with professional business advisors, brokers and accountants
across the Midlands, as we continue to expand our regional presence and lending
book.”
Reward Funding, Press Release The FSE Group backs Ayrshire tech business
Ayrshire-based Ailsa Reliability Solutions has successfully secured a £500,000 loan from the
British Business Bank’s Investment Fund for Scotland via appointed fund
manager, The FSE Group. The funding will enable the company to expand its
workforce, enhance software capabilities, and meet the growing demand for its
state-of-the-art asset and plant monitoring services. Operating across sectors
such as oil and gas, pharmaceuticals, manufacturing, and renewable energy,
Ailsa Reliability has helped clients achieve substantial savings by reducing
unplanned downtime, increasing operational efficiencies and reducing wasted
energy. Jim Pritchard, investment manager at NACFB Patron The FSE Group,
commented: "We are excited to support the team’s expansion plans, which
are built on solid financial forecasts and a proven track record of delivering
significant savings and efficiencies to their clients.”
The FSE Group, Press Release FW Capital backs wrapper producers with £100k investment
A Valleys-based cake wrapper producer which supplies to major companies is setting its sights
on further growth following a £100,000 loan from the British Business Bank’s
Investment Fund for Wales. Based in Hirwaun, Chevler is the UK’s leading
manufacturer of paper cases used in the baking and sale of cakes and muffins.
With the loan delivered by FW Capital, the business has bought new
manufacturing equipment to help meet increased demand. Janet Speck, portfolio
monitoring executive at NACFB Patron FW Capital, said: “Chevler provide a vital
link in supply chains for a number of major and smaller businesses alike, and
reviewing their operations to help cut costs on materials allows them to keep
themselves competitive and maintain strong links with UK-wide companies.”
FW Capital, Press Release Truro microbrewery celebrates first year thanks to SWIG Finance
A Truro microbrewery is celebrating a year in business, thanks to a £15,000 Start Up
Loan issued via the programme’s partner, SWIG Finance. Cornish beer
entrepreneur Mike Mason used the cash to expand the capacity of his
microbrewery, buy his own kegs and casks, and hire his first staff member. John
Peters, managing director at NACFB Patron SWIG Finance, said: “Mike is very
passionate about what he does. Having previously worked for other breweries,
it’s great to see him taking the plunge, starting his own business and already
creating a strong brand identity.” Start Up Loans is part of the British
Business Bank and offers personal loans of up to £25,000 per director and
offers free mentoring to help anyone start or grow a new or early-stage
business.
SWIG Finance, Press Release BCRS Business Loans announces charity of the year
BCRS Business Loans has announced Kids’ Village, a holiday village providing a break for
children with critical illnesses and their families, as its charity of the
year. The partnership will see the NACFB Patron’s team take part in a wide
range of fundraising activities throughout the year, from sponsored challenges
to team volunteering days, all aimed at helping Kids' Village move closer to
building a place where families can make magical memories away from the
pressures of hospital appointments and treatments. BCRS Business Loans chief
executive, Stephen Deakin, stated: “We are pleased to support Kids’ Village and
hope that our fundraising efforts can help them move closer to achieving their
vision.”
BCRS Business Loans, Press Release Firmus Consulting secures six-figure boost
Firmus Consulting, a Bristol-based tech recruitment firm founded by Zak Upcott, has secured a six-figure investment from the British Business Bank's South West Investment Fund, managed by FW Capital. This funding aims to accelerate the firm's expansion, enhance working capital, and recruit two new consultants. Upcott stated: "Business is booming... the loan from the South West Investment Fund is helping to provide working capital." The investment will also support the integration of Artificial Intelligence technologies to improve recruitment processes. Ben Donati from FW Capital noted that this funding is crucial for smaller businesses like Firmus Consulting to grow and innovate.
Insider Media Ltd Elite Pro Sports scores big funding
Elite Pro Sports, a Doncaster-based online sports retailer, is embarking on an ambitious growth strategy with a seven-figure funding package from HSBC UK. The company plans to relocate to a new 70,000 sq ft warehouse, significantly increasing its capacity from 15,000 sq ft. With this investment, Elite Pro Sports aims to double its turnover to £20m by 2025 and create around 20 new jobs, expanding its workforce from 80 to 100 employees.
Doncaster Free Press Cloud hosting firm secures £500k funding
CompuWeb Communications Services Ltd (CWCS), a managed cloud hosting provider, has secured a £500,000 funding package from the British Business Bank's Midlands Engine Investment Fund II, facilitated by Maven Capital Partners. Founded in 1999 by Karl Mendez, CWCS aims to expand its colocation hosting services, responding to increasing demand from businesses for flexible and cost-efficient IT solutions.
Insider Media Ltd Inspired Lending boosts team with new hire
Nathan Wilson has been appointed as the new lending manager at Inspired Lending, bringing nearly a decade of experience from United Trust Bank and Hampshire Trust Bank. In his role, he will focus on underwriting, case management, and business development, ensuring strong service standards for brokers.
Financial Reporter |
Lending Conditions & Policy |
House prices fall in April
House prices in the UK fell by 0.6% in April, marking the largest monthly decline since August 2023, as the rush to take advantage of the stamp duty relief ended. The average home now costs £270,752, with annual growth slowing to 3.4% from 3.9% in March. Robert Gardner, Nationwide's chief economist, commented: "The softening in house price growth was to be expected," following changes to stamp duty that now require first-time buyers to pay on properties over £300,000. Despite the current market softness, Gardner anticipates a gradual increase in activity as the summer approaches, supported by favourable conditions for potential buyers. Meanwhile, lenders are adjusting mortgage rates, with Barclays offering fixed rates below 4%. Writing in the Independent, James Moore says although mortgage rates are improving, there remains deep-rooted affordability issues. He believes house prices still need to fall further. with the market remaining out of reach for most.
BBC News Financial Times Daily Telegraph The Times The Independent London Evening Standard The Guardian |
Effective regulation can promote prosperity - Gurr
Doug Gurr, the new chair of the Competition and Markets Authority (CMA), writes in City AM on the importance of protecting UK consumers whilst promoting competition. He says: "We must evolve, but we're sticking firmly to the fundamentals." Gurr highlights the need for good regulation to support long-term policy goals, particularly economic growth, which is essential for improving public services and quality of life. He stresses that investment is critical, noting that the UK has the lowest level of business investment in the G7. The CMA is implementing improvements across its processes to encourage competition and consumer confidence, particularly through the new Digital Markets competition regime, which aims to adapt to fast-moving markets.
City AM |
Insolvencies soar: Small firms at risk
Scotland has witnessed a 31% year-on-year increase in business insolvencies, with 105 companies declared insolvent in March 2025, compared to 80 in the same month last year. Sectors such as hospitality, construction, and retail are particularly affected, grappling with inflation and rising costs. Chris Richards, founder of SimplyQuote, emphasised that many small businesses overlook significant savings on fixed costs, stating: "In survival mode, small business owners tend to prioritise sales and staffing—but what's often missed is the cost creep of everyday services." Reports from the Federation of Small Businesses reveal that over 60% of SMEs do not compare insurance policies, leading to unnecessary expenses. Experts warn that without addressing these inefficiencies, insolvency rates may remain high into the latter half of 2025. "It's about operational discipline," Richards added, highlighting the importance of scrutinising outgoings for survival.
The Scotsman Beales bows out: Tax rises to blame
Beales, one of Britain's oldest department stores, is closing its last outlet in Poole, Dorset, blaming the Chancellor's tax increases for rendering the business "unviable." Chief Executive Tony Brown stated that the tax rises from last October's Budget cost the company £200,000, contributing to its closure. He expressed concerns that the "fiscal strategy" could lead to more businesses shutting down, leaving only "cafes and vape shops" on the high street. The British Retail Consortium reported that over 250,000 jobs have been lost in the retail sector over the past five years, with rising costs threatening thousands more. Helen Dickinson, Chief Executive of the British Retail Consortium, warned that the closure of Beales is indicative of a broader crisis in retail, stating: "The closure of Beales is not the first, and will not be the last retailer crushed under the weight of the £7bn in additional costs on retail confirmed in last October's Budget."
The Independent UK Business confidence slips due to taxes and tariffs
Recent data reveals that Rachel Reeves' tax policies and Donald Trump's tariffs have severely impacted business confidence in the UK, driving it to its lowest level in over two years. The Confederation of British Industry (CBI) reported that private sector activity remains "subdued," with firms anticipating further declines in the coming months. CBI economist Alpesh Paleja noted: "Uncertainty has ramped up over the last few weeks," highlighting the effects of global volatility and rising national insurance contributions. With the Government facing pressure to stimulate growth, the upcoming industrial strategy and spending review will be crucial for addressing these challenges. Economists warn that without significant measures, Reeves' £9.9bn fiscal headroom may be jeopardised, potentially leading to further tax increases in the autumn.
City AM |
Energy costs threaten UK growth
Three in five British companies report that "rising and unstable" energy costs are hindering their growth plans, according to a survey by EY. The International Energy Agency highlights that Britain's industrial energy costs are the highest in the G7, 46% above the average of IEA member states. Colm Devine, EY's power and utilities sector lead, said: "Energy is clearly no longer just a commodity, it's a competitive and strategic asset which is likely to continue to be subject to significant change and investment over the coming years."
The Times US economy shrunk by 0.3% in Q1
The US economy contracted by 0.3% in the first quarter of 2025, following a growth of 2.4% previously. This downturn was largely attributed to companies stockpiling imports ahead of Donald Trump's tariffs, alongside reduced consumer spending and a 1.4% decline in government expenditure. The record high in imports significantly impacted GDP calculations, as they are subtracted from the overall figure. Analysts at BNP Paribas revised their Q1 GDP forecast down to a 0.6% decline, citing a widening goods trade deficit.
BBC News City AM The I |
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