Homebuilding lender BuildLoan has brought out a commercial mortgage proposition following a successful pilot earlier this year.
The pilot ran in Q1 and tested the demand for the offering, processes and broker engagement.
The lender said this soft launch enabled it to refine its commercial mortgage offering to enhance its service and distribution model ahead of a wider roll-out.
BuildLoan said feedback from brokers during the trial suggested there was a strong appetite for commercial lending supported by the lender’s expertise in development finance, bridging and renovation mortgages and self-build proposition.
The commercial mortgage range is available to intermediaries nationwide and can support cases including owner-occupied premises, investment assets and mixed-use properties.
Raymond Connor (pictured), CEO of BuildLoan, said: “BuildLoan is already the UK’s leading provider of residential mortgages for self-build, custom build, renovations and home improvements. 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.
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“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.”
Connor said the lender was able to test the range in live conditions and make targeted improvements before committing to a full launch.
He added: “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, BuildLoan supported a number of commercial transactions, including a £223,000 loan with Allica Bridging Finance to fund the purchase of a business centre for renovation and long-term letting.
Scott McClymont, business development manager (BDM) at Allica Bridging Finance, said: “This case highlights how brokers can help clients see the bigger picture with commercial property.
“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.”
Connor added: “Commercial lending often requires a pragmatic and informed approach, particularly where deals fall outside standard models. 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 launch forms BuildLoan’s strategy to expand its presence in the specialist lending market. Its offering now covers commercial mortgage, commercial bridging, commercial development and semi-commercial cases. Earlier this year, the lender released a light renovation range.
