BuildLoan has announced that it has launched a commercial mortgage proposition following a pilot programme that tested demand, broker engagement and operational processes during the first quarter of the year.
The move marks a further expansion of the specialist finance provider's offering, following the introduction of its light renovation mortgage range in April. The commercial finance proposition is now available to intermediaries across the UK and supports a range of commercial property transactions, including owner-occupied premises, investment assets and mixed-use properties.
BuildLoan said the pilot enabled it to assess market demand while continuing to grow its lender panel. The trial also allowed the business to refine service standards and its distribution model before a full launch.
Feedback from brokers highlighted demand for a specialist commercial mortgage proposition backed by BuildLoan's experience in development finance, bridging, renovation mortgages and self-build lending.
Commercial mortgage proposition expands specialist offering
The new commercial mortgage range is designed to sit alongside BuildLoan's existing specialist lending services, giving brokers access to a broader range of funding solutions through a single relationship.
“BuildLoan is already the UK’s leading provider of residential mortgages for self-build, custom build, renovations and home improvements," said Raymond Connor, chief executive officer at BuildLoan.
"We have created many unique, exclusive solutions-based mortgage products in our time, and we have always prided ourselves on providing certainty and flexibility through unique mortgage solutions. But this is the first time we have ventured into the world of commercial mortgages.
“Following a successful pilot, which saw plenty of demand from specialist brokers for funding for office blocks, business premises and investment properties for business clients, we are now rolling this out on a permanent basis.
“The pilot allowed us to test the proposition in live conditions and make targeted improvements before committing to a full launch. The response from brokers was encouraging, both in terms of enquiry levels and the quality of cases submitted.
"That feedback has helped shape a proposition that is as practical, responsive and suited to the realities of the market as you would expect from BuildLoan. We are now going for a full-scale launch given the success of our pilot. We can do commercial lending, too.”
During the pilot period, BuildLoan completed a range of commercial transactions. One case involved a £223,000 loan provided through Allica Bridging Finance to fund the acquisition of a business centre for refurbishment and long-term letting.
The lender said the case demonstrated how brokers can access funding that supports both renovation works and longer-term investment objectives through a single facility.
“This case highlights how brokers can help clients see the bigger picture with commercial property," said Scott McClymont, business development manager at Allica Bridging Finance.
"By partnering with BuildLoan, we were able to keep the approach practical and get a deal in place that gave the client the confidence and clarity to press on with plans.”
BuildLoan also worked with a selected group of intermediary partners and lenders throughout the pilot to assess lending criteria, turnaround times and case complexity. Insights gathered during the process led to changes in areas including documentation requirements and underwriting flexibility, with the aim of improving speed and certainty for both brokers and borrowers.
“Commercial lending often requires a pragmatic and informed approach, particularly where deals fall outside standard models," Connor said.
"Our intention is to provide brokers with a dependable route for commercial cases that need careful assessment and tailored structuring. Moving from pilot to launch reflects our confidence in the proposition and the demand we are seeing across the market.”
The commercial mortgage launch forms part of BuildLoan's wider strategy to increase its presence in specialist property finance and strengthen relationships with intermediaries looking for solutions beyond mainstream residential lending.
Brokers can now submit commercial mortgage, commercial bridging, commercial development and semi-commercial enquiries through BuildLoan's specialist lending team. The firm has also allocated dedicated support to the proposition as it prepares for higher volumes following the national launch.
