Broker Trends and Opportunities – September 2024

Changing Seasons – You don\’t have to \’Fall Back\’

We\’re very aware it\’s September as the rain has arrived, and the saying we rely on to remember which way the clocks move points to us moving back in the Fall.

But we\’d suggest that this is currently the time to move forward with clients\’ requirements – wherever possible in advance of cliff-edge refinancing deadlines. The financial rollercoaster ride of the last few years for property investors and trading businesses has always shown that those who have planned ahead and tried to get ahead of events and renewals, wherever possible, have fared better.

The Commercial Mortgage Market

It\’s estimated that 1.8 million fixed-rate residential mortgages will come up for renewal in 2025, and while the same forecasts aren\’t available for the commercial mortgage market, it\’ll be a significant number as the most common term is a five year fixed-rate and current interest rates and the economic environment are much changed from 2020. These renewals won\’t be at anything like the same rate or monthly cost.

With the current round of mortgage rate reductions by lenders, it\’s well trailed as a good time to look at renewals of residential mortgages up to six months in advance of the renewal date – but anecdotally, commercial mortgage customers are renowned for leaving things a little closer to the renewal cliff edge, and all too many are already on a Standard Variable Rate (SVR) by the time they are talking to their broker.

Our Advice

We suggest that you should be talking to them about everything that they have in place, and as part of your relationship, have sight of renewal dates, so that you can help them to get ahead of the curve.

All too often, portfolio landlords will reach out with the one property that is imminently coming up for renewal – or is on an SVR already – but a look at the portfolio could show you that several others are also imminent, within the next six months or so, and you can help them to get ahead of the curve.

Similarly, trading businesses will have known working capital requirements in the future – for liabilities like supply chain, tax, recruitment and meeting contracted deadlines, to name just a few – and the closer to a deadline that they leave the sourcing of finance, the harder (and sometimes more expensive) it can get.

Another opportunity to add value to your clients is to understand the commercial drivers of their business – and to sometimes be there before they are with a prompt to look at their finance options.

The opportunity for the advisor to add value to customers is not to sit back and wait for requirements to land on their desk but to help customers move forward with their planning and help them to get ahead of the curve.

– Mark Grant, Managing Director, Fiducia Commercial Network. September 2024.

About Fiducia Commercial Network

Fiducia Commercial Network is a commercial finance \’Appointed Representative\’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.

Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.

The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years\’ experience in commercial finance.

If you\’d like to discuss joining Fiducia Commercial Network or you\’d like to apply to become an Appointed Representative…

SPEAK TO OUR TEAM

To discuss Fiducia Commercial Network or to apply to become an Appointed Representative email the team via by clicking this link.

For all media and marketing enquiries contact –  pr@fiduciagroup.co.uk